Which of the following decreases the demand for an inferior good?
A) an increase in income
B) a decrease in the price of a complement
C) a decrease in income
D) an increase in the price of a substitute
A
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Microeconomics primarily models: a. the overall economy
b. the behavior of firms but not households. c. the behavior of households but not firms. d. the behavior of both firms and households and how they interact in the marketplace.
States in the U.S. may mandate minimum wages above the federal level
a. True b. False Indicate whether the statement is true or false
According to Figure 12.1, if the economy moves from point C to point A because of increased government spending, the amount of private spending crowded out is equal to the distance
A. BD. B. BC. C. AB. D. AC.
The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate if
A. the supply of labor decreases. B. the supply of labor increases. C. the demand for labor decreases. D. the demand for labor increases.