For Antonio, the income effect of an interest-rate increase is stronger than the substitution effect. In response to a higher interest rate, will Antonio save more or will he save less?
In response to a higher interest rate, Antonio will save less.
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An increase in stock prices will be a(n)
A. movement along the consumption function. B. movement down along the consumption function. C. downward shift of the consumption function. D. upward shift of the consumption function.
In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs
a. True b. False Indicate whether the statement is true or false
A good is considered nonexcludable if
a. many individuals can share in the consumption of the same unit of the good. b. the consumption of the good by one individual lowers the amount available for others. c. it is impossible or very costly to exclude nonpaying customers from receiving the good. d. its production is financed through tax revenue rather than market prices.
A pollution tax:
A. decreases the price of the good taxed. B. increases the price of the good taxed. C. does not affect the quantity demanded of the good taxed. D. does not affect the price of the good taxed.