The labor supply curve may have a backward-bending portion if, at higher wages, the income effect is
a. smaller than the substitution effect.
b. larger than the substitution effect.
c. negative.
d. Any of the above could result in a backward-bending supply curve.
b
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In an open economy, private saving, , is equal to
A) I - CA + (G - T). B) I + CA - (G - T). C) I + CA + (G - T). D) I - CA - (G - T). E) I + CA + (G + T).
Evidence shows that flexible exchange rates have created a destabilizing speculation in the foreign exchange market
Indicate whether the statement is true or false
Protection of a new industry until it becomes strong enough to compete is called
A) the national defense argument. B) the government indirect tax argument. C) the leveling-the-playing-field argument. D) the infant-industry argument.
The primary measure of a country's development is
What will be an ideal response?