In general, an increase in wages will lead to some reaction in line with
A. the income effect but not the substitution effect.
B. the substitution effect but not the income effect.
C. both the income and substitution effect.
D. neither the income effect nor the substitution effect.
Answer: C
You might also like to view...
If the Federal Reserve System buys government securities from commercial banks and the public, then ________.
A. the money supply will contract B. commercial bank reserves will decline C. commercial bank reserves will be unaffected D. it will be easier to obtain loans at commercial banks
If the elasticity of supply is 4, a 10 percent increase in the price of a good leads to a
A) 40 percent increase in the quantity of supply. B) 4 percent decrease in the quantity demanded. C) 2.5 percent increase in the quantity supplied. D) 2.5 percent decrease in the quantity demanded.
With regard to crowd funding, all of the following accurately describe "qualified investors" EXCEPT:
A) they must have incomes of at least $200,000 per year B) there are no longer any distinctions between investors following the passage of the JOBS act C) they must have assets of at least $1 million not including the value of their house D) they must make up a majority of investors in each start up
In economics, "capital" refers to
a. money b. stocks, bonds, and other financial assets c. the seat of government d. machines, buildings, tools, and knowledge e. net worth (assets minus liabilities)