The substitution effect is the change in the quantity demanded of a good that results from
a. the effect of a change in the price on consumer purchasing power.
b. the effect of a change in the price making the good more or less expensive relative to other goods,
holding constant the effect of the price change on consumer purchasing power.
c. either a or b
d. none of the above.
b. the effect of a change in the price making the good more or less expensive relative to other goods,
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Historically, one of the most common reasons for countries to impose tariffs was
A) to protect their national security. B) to raise revenue for the government. C) to eliminate unemployment. D) to counter inflation. E) None of the above.
The United Auto Workers is striking against Ford. The Teamsters refuse to deliver steel to Ford. This is an example of
A) a jurisdictional dispute and is illegal under the Taft-Hartley Act. B) a secondary boycott and is illegal under the Taft-Hartley Act. C) a sympathy strike and is illegal under the Taft-Hartley Act. D) a closed shop and is illegal under the Wagner Act.
Discrimination occurs when a group of people have different opportunities because of characteristics that have nothing to do with their individual abilities
a. True b. False
A Swiss watchmaker opens a factory in the United States. This is an example of Swiss
a. exports. b. imports. c. foreign portfolio investment. d. foreign direct investment.