Assume that consumption when young and consumption when old are both normal goods. The income effect of an increase in the interest rate will result in
a. an increase in saving when young.
b. an increase in saving when old.
c. a decrease in saving when young.
d. a decrease in saving when old.
c
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Which of the following is a benefit of the price system?
A) the existence of positive externalities B) the production of public goods C) Consumers have what they want since politicians and business managers decide what is to be produced. D) the freedom of consumers to decide what they want to purchase
A technological advance that increases labor productivity will:
a. lower wages. b. decrease the demand for labor as fewer workers are needed. c. decrease the supply of labor as fewer workers are needed. d. increase the demand for labor as MP rises. e. decrease the demand for labor as MP falls.
Country A has a GDP of $300 billion and a population of 10 million, while Country B has a GDP of $3 trillion and a population of 200 million. The per capita GDP in Country A and Country B are _____ and _____, respectively
a. $30,000 . $15,000 b. $15,000 . $30,000 c. $15,000 . $7,500 d. $7,500; $15,000
Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
A. Price will increase, and quantity will increase. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will decrease.