If your labor supply increases when you get a raise, which of the following is TRUE?
A) Your substitution effect is greater than your income effect.
B) Your substitution effect is less than your income effect.
C) Your substitution effect equals your income effect.
D) None of the above answers is correct.
A
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It has been observed in country X that with an increase in college enrollment over a period of six years, the demand for televisions has also increased
Would it be right to conclude that the increase in college enrollment has caused the increase in demand for televisions? Why or why not?
International trade between two countries
A) benefits only the receiving country. B) benefits only the sending country. C) benefits both countries. D) benefits neither country.
Assume that there is an unexpected increase in the demand for U.S. dollars in Switzerland. If the foreign currency price of the U.S. dollar is fixed, the U.S. Federal Reserve must intervene in the foreign exchange market such that:
a. the supply of U.S. dollars increases. b. the U.S. demand for the Swiss franc falls. c. the supply of U.S. dollars decreases. d. Swiss imports from the United States are reduced. e. the Swiss currency is devalued.
Drug companies are willing to spend millions of dollars on developing new drugs because
A.) their research will drive their competitors out of business. B.) they can patent the new drug and have a monopoly on its production and sale. C.) they can raise the prices on older drugs whose patents have expired. D.)they can produce unlimited quantities of the new drug.