If a consumer is compensated for the income effect that occurs when the price of a good increases, then his demand curves can never slope upward
What will be an ideal response?
True. The demand curve would only include the substitution effect. Even for Giffen goods, dq/dp is negative holding utility constant.
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A monopolist who owned the entire supply of a scarce resource would set a price
a. at about the competitive level. b. lower than the competitive level. c. higher than the competitive level but lower than what a monopoly producer of a non-scarce good would. d. above that which would be chosen by a monopoly producer of a nonscarce good.
Your savings account balance would be counted in which measure of money?
A. M1 B. M2 C. Hard money D. It would be counted in both M1 and M2
Which of the following could lead to an inward shift of the production possibilities frontier?
a. an increase in the cost of one good b. an increase in the utilization of resources c. a rise in the level of technology d. a law is passed whereby a mandatory retirement age of 60 is imposed e. a decrease in the utilization of resources
The basic conservative solution to welfare dependency is
A. forcing people off welfare. B. government jobs. C. ending immigration. D. identical to the liberal solution.