Giffen goods have positively-sloped demand curves because they are
a. normal goods for which the income effect outweighs the substitution effect.
b. normal goods for which the substitution effect outweighs the income effect.
c. inferior goods for which the income effect outweighs the substitution effect.
d. inferior goods for which the substitution effect outweighs the income effect.
c
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_____ prefer an import tax to a quota
a. Taxpayers b. Domestic producers c. Foreign producers d. Consumers
Which of the following is true about perfect competition?
a. Since a perfectly competitive seller can sell all he wants at the market price, her demand curve is horizontal at the market price over the entire range of output that she could possibly produce. b. Because perfectly competitive markets have many buyers and sellers, each firm is so small in relation to the industry that its production decisions have no impact on the market. c. Perfectly competitive markets have easy entry and exit. d. All of the above are true about perfect competition.
The delay between the time at which a problem is recognized and the time at which a policy to deal with it is enacted is called
A) the impact lag. B) the implementation lag. C) the government lag. D) the recognition lag.
A reduction in regulation will shift the aggregate:
A. supply curve leftward. B. supply curve rightward. C. demand curve leftward. D. demand curve rightward.