the slope of the consumption = the _______ propensity to consume
What will be an ideal response?
marginal
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Regardless of the size of wealth and substitution effects for workers, the benefit of a wage subsidy will accrue disproportionately to workers if the labor supply curve is relatively more wage-inelastic than the labor demand curve.
Answer the following statement true (T) or false (F)
When positive externalities exist in a market, if a Pigouvian subsidy is imposed:
A. those who interact in the market will lose surplus. B. those who interact in the market will gain surplus. C. those who do not interact in the market, but are affected by the externality, will gain surplus. D. None of these statements is necessarily true.
The shoeleather cost of inflation refers to
a. the redistributional effects of unexpected inflation. b. the time spent searching for low prices when inflation rises. c. the waste of resources used to maintain lower money holdings. d. the increased cost to the government of printing more money.
Suppose a U.S. government program subsidizes the production of domestic sugar producers and places a tariff (tax) on the importation of sugar from other countries. This program
What will be an ideal response?