A Giffen good is a good for which
a. a decrease in the price decreases the quantity demanded.
b. the substitution effect outweighs the income effect.
c. an increase in the price decreases the quantity demanded.
d. Both a) and b) are correct.
a
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Transactions costs are defined to be the costs of:
a. negotiating and enforcing contracts. b. complying with environmental regulations. c. eliminating market and government failures. d. finding and obtaining offsets.
In recent years, more than one quarter of federal government spending went to Social Security and income security programs
a. True b. False Indicate whether the statement is true or false
How will an increase in the price of coffee affect the market for cocoa, a substitute good?
a. The supply of cocoa will increase, leading to a reduction in the price of cocoa. b. The supply of cocoa will decrease, leading to an increase in the price of cocoa. c. The demand for cocoa will increase, leading to an increase in the price of cocoa. d. The demand for cocoa will decrease, leading to a reduction in the price of cocoa.
A decision by a government to sell businesses that currently are operated by the government to private investors is an example of ________ policy.
A. monetary B. aggregation C. structural D. fiscal