Income effect of lower wages implies
a. workers prefer leisure to work.
b. an increase in the productivity of labor.
c. a fall in the demand for labor.
d. workers would want to work more.
d
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Which of the following is included in M2?
I. money market mutual funds II. small-denomination certificates of deposit A) I only B) II only C) Both I and II D) Neither I nor II
Price floors
A) provide free market incentives for producers. B) create surpluses by setting the price above equilibrium. C) create shortages by setting the price above equilibrium. D) are used by advocates of the free market.
Because of unseasonably cold weather, the supply of oranges has substantially decreased. This statement indicates the:
A. demand for oranges will necessarily rise. B. equilibrium quantity of oranges will rise. C. amount of oranges that will be available at various prices has declined. D. price of oranges will fall.
When it comes to ________ goods, it is important to remember only one level of output can be realized and consumers are ________ for that level.
A. private; willing to pay different amounts B. public; willing to pay different amounts C. private; only willing to pay the same amount D. public; only willing to pay the same amount