The income elasticity of demand for raw agricultural products is ________ than the income elasticity of demand for non-food products
Fill in the blank(s) with correct word
Lower
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If sellers of good cars and sellers of lemons both offer a warranty on their cars, consumers will then be able to tell which cars are the lemons
Indicate whether the statement is true or false
Sarah has the utility function U(X,Y) = X.5Y.25. When Sarah consumes X = 2 and Y = 6 she has a marginal rate of substitution of
A) -12. B) -1/6. C) -6. D) -1/12.
In Figure 9-13, a movement of equilibrium from point D to point C could be caused by a(n)
a.
decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b.
increase in short-run supply from S1 to S2
c.
increase in supply from S1 to S2 in response to economic profits caused by an increase in demand from D1 to D2
d.
an increase in demand from D1 to D2 in the short run
The crowding out effect:
A. increases the multiplier effect, so that an increase in taxes reduces income by less. B. decreases the multiplier effect, so that an increase in taxes reduces income by less. C. increases the multiplier effect, so that an increase in taxes reduces income by more. D. decreases the multiplier effect, so that an increase in taxes reduces income by more.