The substitution effect of a price change describes what happens to the shift in demand for a good when its price changes
a. True
b. False
B
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Which of the following is a feature of a good theory?
A) A good theory does not rely on data. B) A good theory cannot be tested with data. C) A good theory is free from approximations. D) A good theory closely predicts actual behavior.
Charging risk-based insurance premiums is a time-honored principle of insurance management to reduce
A) moral hazard. B) adverse selection. C) free riding. D) principal-agent problems.
One way to solve the problems caused by information asymmetry is:
A. screening. B. signaling. C. building a reputation. D. All of these are solutions to information asymmetry.
Unemployment data in the U.S. are published by the:
a. Bureau of Economic Analysis. b. Bureau of Labor Statistics. c. Department of Commerce. d. Bureau of Federal Intelligence. e. Internal Revenue Service.