A stock market crash which causes stock prices to fall should cause
A) an increase in wealth. B) an increase in consumption spending.
C) no change in consumption spending. D) a decrease in consumption spending.
D
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In a cartel, how does the number of firms affect the likelihood that the cartel will be able to successfully maintain a high price?
What will be an ideal response?
An increase in Todd's wealth from $2 million to $4 million raises his utility from 400 units to 500 units. If he has a utility of wealth curve with the typical shape showing risk aversion, then with a wealth of $6 million his utility might be
A) 500 units. B) 570 units. C) 600 units. D) 620 units.
The income effect of a wage increase is expected to increase
a. supply of labor. b. supply of goods and services. c. demand for leisure. d. demand for labor.
Suppose that a new invention decreases the marginal productivity of labor, shifting labor demand to the left. Such an invention would be an example of
a. labor-saving technology. b. labor-augmenting technology. c. revenue technology. d. supply-shifting technology.