Mickey got a raise from $14 an hour to $20 an hour. As a result of the wage increase, Mickey desires to work more hours and take less hours of leisure. For Mickey
A. the substitution effect dominates the income effect.
B. the substitution effect must be zero.
C. the substitution effect must equal the income effect.
D. the income effect dominates the substitution effect.
Answer: A
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Subsidies are most likely to:
A. leave total economic surplus unchanged, but transfer surplus from producers to consumers. B. reduce total economic surplus. C. increase total economic surplus. D. reduce consumer surplus.
The congestion tax implemented in London reduced traffic volume and cut travel time for cars and buses in half
Indicate whether the statement is true or false
Refer to Figure 14-4. What is the equilibrium outcome in this game and is this a subgame-perfect equilibrium?
A) Either offer of $30 or $40 per copy of the software package is accepted and these two equilibria are subgame-perfect equilibria. B) In the equilibrium, neither offer is accepted as Rainbow Writer holds out for a better deal. The two rejection outcomes are subgame-perfect equilibria. C) Either offer of $30 or $40 per copy of the software package is accepted but these are not are subgame-perfect equilibria. D) In the equilibrium, Odeon offers $40 per copy of the software package and is accepted but this is not a subgame-perfect equilibrium.
In 2013, plowback accounted for approximately ____ of corporate financing while new stock sales accounted for approximately ____
a. $2 trillion; $384 billion b. $65 billion; $1 trillion c. $1 trillion; negative $65 billion d. negative $65 billion; $1 trillion