Statistical studies in the United States have reached the conclusion that for low-income workers
A. the substitution effect is greater than the income effect.
B. the income effect is greater than the substitution effect.
C. the income effect is about equal to the substitution effect.
D. the substitution effect is of the “wrong” sign.
Answer: A
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If the demand for dog grooming increases so that the price of dog grooming rises, then number of workers hired by Doug's Dog Grooming would
A) decrease. B) increase. C) remain unchanged. D) Any of the above answers are possible.
A monopolist will earn economic profits as long as his price exceeds
a. marginal revenue. b. average fixed cost. c. average variable cost. d. average total cost.
A shortage creates a situation that forces prices to ________ while a surplus creates a situation that forces prices to ________
A) decrease; increase B) decrease; decrease C) increase; decrease D) increase; increase
Since 2000, the overall growth rates among emerging countries have been
A. negative every year. B. higher than the overall growth rates among advanced nations. C. positive but lower than the overall growth rates among advanced nations. D. lower than the overall growth rates among other developing nations.