In general, the substitution effect of an increase in the price of a normal good:
A. will cause the individual to buy more of that good because they have relatively more income.
B. will cause the individual to buy less of that good because they have relatively less income.
C. will cause the individual to buy more of that good and less of others because it is relatively less expensive.
D. will cause the individual to buy less of that good and more of others because it is relatively more expensive.
D. will cause the individual to buy less of that good and more of others because it is relatively more expensive.
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A recessionary real shock is associated with an outward shift of the short-run Phillips curve and with a leftward shift of the short-run aggregate supply curve
a. True b. False Indicate whether the statement is true or false
In his seminar on Organizational Economics, Professor Chang always uses study teams for presentation of outside research materials. He has found that three students per team tend to work well. Walking into a new class, he finds that registration has allowed 60 students to sign up. He decides to increase the team size from three to eight students. What problems can he expect to deal with during the semester?
What will be an ideal response?
A theory of ________ that concludes that the social contract emerging from the original position would call for an income distribution that would maximize the well-being of the worst-off member of society is known as Rawlsian justice.
A. labor value B. legal equity C. utilitarian justice D. distributional justice
Explain the concept of marginal factor cost. Why is the marginal factor cost higher than the wage rate?
What will be an ideal response?