If a person supplies fewer hours of labor in response to a wage increase, then
A) the substitution effect is greater than the income effect.
B) the income effect is greater than the substitution effect.
C) the income effect equals the substitution effect.
D) the person is not maximizing utility.
B
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Match each of the following jobs to its major area: forecasting, analysis, research, or data development. Explain your answers
(a) Economist at university, testing theories about the efficient allocation of resources in the foreign exchange market (b) Economist at Wall Street firm trying to predict the rate of inflation next year using past data (c) Economist at auto firm looking at demand for new automobiles (d) Economist at the International Trade Commission trying to determine whether foreign firms are dumping goods in the United States (e) Economist at the Commerce Department developing new methods for calculating price indexes (f) Economist consulting in Eastern Europe about how to set up free-market financial systems
The "Made in the USA" campaign was popularized by unions in an effort to influence which determinant of demand?
A. Incomes B. Preferences C. Expectations of future prices D. Prices of related goods
Under oligopoly, collusive practices to fix prices are more likely to take place if
a. market demand is highly elastic. b. market demand is highly inelastic. c. there are a large number of firms in the industry. d. both market demand is highly inelastic and there are a large number of firms in the industry.
A family on a trip budgets $800 for meals and gasoline. If the price of a meal for the family is $50, how many meals can the family buy if they do not buy any gasoline?
a. 8 b. 16 c. 24 d. 32