Katie wins $3 million in her state's lottery. If Katie drastically reduces the number of hours she works after she wins the money, we can infer that the income effect is larger than the substitution effect for her
a. True
b. False
Indicate whether the statement is true or false
True
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The assumed goal of the firms that operate in each of the four market structures discussed in the text is to maximize:
A) sales. B) revenue. C) profits. D) price.
Over the inelastic range of a demand curve, there is
A) a positive relationship between a given percentage change in price and a change in total revenues. B) a negative relationship between a given percentage change in price and a change in total revenues. C) an increase in total revenues regardless of an increase or decrease in price. D) no relationship between changes in price and changes in total revenues.
Which of the following will enable a nation to obtain a combination of consumer goods and capital goods outside its production possibilities curve?
What will be an ideal response?
Which is the most accurate statement?
A. The gold standard does not work in theory or practice. B. The euro is the official currency in every European country. C. There is virtually no difference between the gold standard and the gold exchange standard. D. At one time an ounce of gold was worth $35.