When consumption and leisure are both normal goods, after an increase in real dividend income minus taxation, the rational consumer
A) increases consumption and increases leisure.
B) increases consumption and reduces leisure.
C) reduces consumption and increases leisure.
D) reduces consumption and reduces leisure.
A
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The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point B?
A) 12 tons of rice B) 15 thousand bottles of wine C) 6 thousand bottles of wine D) 9 thousand bottles of wine E) Nothing, it is a free lunch.
An increase in unearned income always creates a disincentive to work
Indicate whether the statement is true or false
Compare and contrast the recent recession with the Great Depression.
What will be an ideal response?
Graphs such as bar graphs and pie charts are limited in that they
a. can only show variables that are positively related. b. can only show variables that have a negative correlation. c. provide information on only one variable. d. provide information on no more than two variables.