"In 2008, air travel decreased substantially despite significant reductions in ticket prices." If this information is correct, it indicates that the law of demand did not apply to air travel in 2008.
a. true
b. false
b. false
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Unemployment is measured primarily in urban areas because in rural areas farm work is usually an outlet for labor
a. True b. False
Incentives to work and save are reduced when
a. income taxes are higher. b. consumption taxes replace income taxes. c. corrective taxes are implemented. d. All of the above are correct.
The self-control hypothesis suggests that people:
A. control their spending in order to save more when the real interest rate increases. B. substantially decrease their saving when the real interest rate increases. C. base their spending decisions (and consequently their saving decisions) on spending decisions of others. D. want to save, but lack the discipline to refrain from consuming.
Coordination problems in large firms might lead to:
A. horizontal marginal cost curves. B. downward-sloping marginal cost curves. C. upward-sloping short-run average cost curves. D. upward-sloping long-run average cost curves.