What do economists call the tendency of people at a higher wage rate to choose free time over work?
a. substitution effect
b. income effect
c. diversion theory
d. leisure theory
b. income effect
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What is the national income identity for a closed economy?
What will be an ideal response?
Higher the economic freedom in a country, _____
a. lower is the standard of living of the people b. higher is the life expectancy of the people c. greater is the bureaucratic freedom and red-tapism d. lower is the level of access to education due to lack of government schools e. lower is the literacy rate
A movement downward and to the right along a demand curve is called a(n)
a. increase in demand. b. decrease in demand. c. decrease in quantity demanded. d. increase in quantity demanded.
Government subsidies are in place to protect the population rather to benefit the economy in the case of which recipient(s)?
(A) Tobacco growers in the United States. (B) National airlines in Western Europe. (C) Small farms in France. (D) A national car company in Indonesia.