Recent data has shown that income and volunteer time are positively related. Assuming that volunteer time is included in leisure time, what could explain this observation?
A) Higher income individuals view leisure as a normal good such that the income effect dominates the substitution effect.
B) Higher income individuals view leisure as a normal good such that the substitution effect dominates the income effect.
C) Higher income individuals view leisure as an inferior good such that the income and substitution effects both increase leisure time.
D) Both A and C.
A
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In the short run, if the average cost curve is shown as decreasing, it is because
A. fixed cost is spread out over larger amounts of production. B. it becomes cheaper to produce an infinite amount of goods. C. additional units of production are inferior. D. variable costs increase with each additional amount of production.
Which agreement was signed in 1944 with the purpose of creating a new international payment system?
A) Philadelphia Accord B) Bretton Woods C) Camp David D) Lake Geneva
Short-run elasticity of supply is greater than long-run elasticity of supply
Indicate whether the statement is true or false
The opportunity cost to a consumer who smokes cigarettes consists of the:
A. Costs imposed on others who inhale second-hand smoke B. Products that the consumer could have bought instead of cigarettes C. Amount of cigarette-taxes paid by this consumer D. Cost of complementary products such as lighters, ashtrays, and cigarette holders