During the postwar period, increased real wages for women led to an increase in the labor force participation rate for women. This implies that, for women,
a. the substitution effect of a wage increase is greater than the income effect.
b. the substitution effect of a wage increase is less than the income effect.
c. the substitution effect of a wage increase equals the income effect.
d. wage increases do not have an income effect.
b. the substitution effect of a wage increase is greater than the income effect.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The reservation value of a buyer reflects her ________
A) willingness to pay for a good or service B) trade-off between buying various goods and services C) total utility from a good or service D) total income
Private solutions often are not possible due to the costs of negotiating and enforcing these solutions. Such costs are called: a. transaction costs
b. external costs. c. deadweight losses. d. social costs.
An example of income earned but not received is corporate dividends
Indicate whether the statement is true or false