If Jerry's demand for leisure increases as the wage increases:
A. the income effect dominates the substitution effect.
B. the substitution effect dominates the income effect.
C. the income effect is completely offset by the substitution effect.
D. there is insufficient information.
Answer: A
You might also like to view...
In what possible ways can the production of public goods be funded?
In order to maintain an effective fixed exchange rate that differs from the market rate, the government must have
a. arbitrage capability b. a surplus of merchandise exports c. the ability to persuade other governments to control their exports d. sufficient foreign exchange reserves e. the ability to float high interest rates
Suppose a Boeing 777 is sold to a Chinese company for $250 million and resells it to a Hong Kong airline for $251 million. GDP will count this as
A. $251 million. B. nothing. C. $451 million. D. $250 million.
If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
a. 0.40 b. 4.00 c. 2.50 d. 0.25