An individual's labor supply curve will have a
A) positive slope if the income effect exceeds the substitution effect.
B) negative slope if the substitution effect exceeds the income effect.
C) positive slope if the substitution effect exceeds the income effect.
D) negative slope regardless of whether the substitution effect or income effect is larger.
C
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If a household has a husband, wife, and two kids, has a standard deduction of $12,600, has itemized deductions of $13,850, and personal exemptions of $16,000 (4*$4,000), then the first ________ of income is federal income tax free.
A. $29,850 B. $41,450 C. $37,100 D. $28,600
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
The interest payment on a bond is called a face value payment
Indicate whether the statement is true or false
What is the law of diminishing marginal product? What causes it?