The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change
Indicate whether the statement is true or false
TRUE
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When you purchase a new pair of jeans you do so in the
A) factor market. B) resource market. C) input market. D) product market.
According to the text, success requires:
A) there is no secret formula that guarantees success. B) a visionary leader. C) a focus on quality. D) a customer-orientation. E) an emphasis on efficiency.
The costs of labor and land used to produce a product is
A) administrative costs. B) costs of goods sold. C) net profit plus the cost of capital. D) none of these choices.
Which of the following statements about unanticipated inflation is true?
a. It reduces average purchasing power in the economy. b. It reduces total purchasing power in the economy. c. It redistributes purchasing power in the economy. d. It reduces nominal wages. e. Its effects are spread evenly throughout the economy so that no one gains or loses from inflation.