Assume that the substitution effect dominates the income effect. When the government raises tax rates, after-tax real wage rates
A. rise, consumption increases, and labor supply increases.
B. fall, consumption increases, and labor supply decreases.
C. fall, consumption decreases, and labor supply increases.
D. fall, consumption decreases, and labor supply decreases.
Answer: D
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Which of the following is likely to be present in a perfectly competitive market?
a. patents b. government licenses c. nonprice competition such as advertising d. high capital costs e. firms producing identical products
The circular flow model illustrates
A. the interdependence of businesses and consumers. B. the importance of having a central plan for the economy. C. how natural and other resources are created. D. how money is created by the banking system.
When a new depositor opens a checking account at the First National Bank, the bank's assets ________ and its liabilities ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Of the English-owned joint stock companies that operated in North America, which was the only one to survive longer than 20 years?
a. The London Company b. The New Plymouth Company c. The Hudson Bay Company d. The Massachusetts Bay Company