The increase in the quantity of labor supplied in response to a higher wage is called the:
A. price effect.
B. labor effect.
C. income effect.
D. substitution effect.
A. price effect.
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Interest is a payment for deferred
a. taxation b. saving c. consumption d. investment e. none of the above
If it costs the DuPont Chemical Company more to make the chemical flaxinate in the United States than it does to make it in Formosa, the Formosans must have:
a. lower demand for flaxinate. b. tariffs on flaxinate. c. inefficient markets. d. a more favorable political environment. e. an absolute advantage in flaxinate production.
Suppose that Kara values a hot fudge sundae at $6 and Stacia values one at $5 . The pretax price of a hot fudge sundae is $3 . The government imposes a $1 tax on hot fudge sundaes, which raises the price to $4 . What is the deadweight loss from the tax?
________ refers to the time needed to identify a macroeconomic problem and assess its seriousness
a. Decision-making lag b. Implementation lag c. Recognition lag d. Effectiveness lag