When a reduction in the price of a good allows a consumer to purchase more of all goods, this effect is called the:
a. income effect.
b. substitution effect.
c. elasticity effect.
d. monetary effect.
a
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Some people working in the underground economy could be counted in labor statistics as unemployed, while others may be counted as not in the labor force
a. True b. False Indicate whether the statement is true or false
Claire Quinn has a marginal tax rate of 33 percent on her federal personal income tax. Her average tax rate is
A. more than 33%. B. also 33%. C. less than 33%. D. zero.
According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A. anticipated future inflation B. an unexpected increase in aggregate demand C. firms' average inflation adjusted per-unit costs of production D. all of these
Bongo plays drums in his parents' garage after school. What can we be sure of?
A) Bongo's drumming imposes negative externalities on others. B) Bongo's drumming delivers positive externalities to others. C) Bongo expects to benefit while drumming. D) All of the above.