The fact that more women have chosen to work as real wages rise is evidence that, for them:
a. leisure is an inferior good.
b. income and substitution effects of higher real wages work in the same direction.
c. income and substitution effects of higher real wages may work in opposite directions.
d. income and substitution effects may work in opposite directions but that the substitution effect is stronger.
d
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When the U.S. government removes investment tax credits:
a. consumption spending falls. b. the return on investment increases. c. capacity utilization in the economy expands. d. the cost of capital increases. e. technological innovation advances more rapidly.
Which of the following represents the total value of all final goods and services produced in a given period, adjusted for inflation?
a. gross domestic product (GDP) b. gross domestic product (GDP) growth rate c. rate of inflation d. real gross domestic product (RGDP)
Suppose you purchase a bond with a 5 percent risk-free rate that matures in three years. The bond pays $250 at the end of each year and a principal amount of $2,000 on maturity. The present value of the bond is
A. $3,000. B. $2,408.51. C. $3,433.62. D. $2,123.
Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.
A. $7.00 to $5.00; 7 to 10 B. $7.00 to $5.00; 7 to 4 C. $5.00 to $7.00; 4 to 7 D. $5.00 to $7.00; 10 to 7