Wealthy people will tend to have vertical labor supply curves
A) only if their income effect just offsets their substitution effect.
B) only if their income effect is greater than their substitution effect.
C) only if their income effect is less than their substitution effect.
D) only if they don't have an income effect.
A
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If an excise tax reduces economic surplus why does the government impose the tax?
A. The marginal benefits of programs funded by the tax is worth the marginal cost. B. The opportunity cost of having the tax is higher. C. Tax revenue is scarce and the government needs to tax the right goods. D. The government needs the money to get out of debt.
In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold and interest rates move in the ____ direction as the change in the price level, while investment and the quantity RGDP demanded move in the ____ direction as the change in the price level
a. Same, same b. Same, opposite c. Opposite, same d. opposite, opposite
In the open-economy macroeconomic model, net capital outflow rises if
a. either the exchange rate rises or the real interest rate falls. b. either the exchange rate falls or the real interest rate rises. c. the real interest rate rises. Net capital outflow does not depend on the exchange rate. d. the real interest rate falls. Net capital outflow does not depend on the exchange rate.
If women are not allowed to own property or inherit wealth but men are, this is an example of comparative advantage.
Answer the following statement true (T) or false (F)