Who has a greater opportunity cost of enjoying leisure—a janitor or a surgeon?
a. whoever has the greater income effect
b. whoever has the greater substitution effect
c. the janitor because his wage is lower
d. the surgeon because his wage is higher
Answer: d. the surgeon because his wage is higher
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If people buy less flowers at every price when their incomes fall, then
a. flowers are a normal good. b. the demand for flowers is positively sloped. c. demand for flowers has increased. d. the price of flowers has increased. e. there has been a decrease in population that changed demand.
One way of organizing two periods of panel data is to have only one record per cross-sectional unit.
Answer the following statement true (T) or false (F)
The long run is defined as:
A. the horizon in which there are both fixed and variable factors of production. B. the horizon in which the manager can adjust all factors of production. C. the horizon in which there are only fixed factors of production. D. greater than one year.
Excess burden is the total burden of a tax minus the tax revenue generated by the tax.
Answer the following statement true (T) or false (F)