The more broadly a good is defined,
a. the more substitutes it has so the more elastic is its demand
b. the fewer substitutes it has so the more elastic is its demand
c. the more substitutes it has so the less elastic is its demand
d. the fewer substitutes it has so the less elastic is its demand
e. the more complements it has so the more elastic is its demand
D
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If the price of the good measured on the horizontal axis falls, a consumer's budget line
A) becomes flatter. B) becomes steeper. C) shifts rightward and its slope does not change. D) shifts leftward and its slope does not change.
Other things equal, which of the following will lead to an increase in output and employment?
A) The federal government decides to eliminate the Department of Education. B) The federal government implements a national value-added tax (VAT). C) The federal government passes a tax incentive for firms that employ returning war veterans. D) The federal government reduces the duration and amount of unemployment benefits.
The supply-siders argue that investment is
a. primarily a function of current income. b. highly responsive to changes in after-tax real interest rates. c. primarily a function of expectations. d. both a and b.
The figure below represents the effects in the labor markets due to migration. Here, the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel). Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating.
As a result of migration, the employers in North
A. gain $162.5 million. B. lose $131.25 million. C. lose $100 million. D. gain $31.25 million.