If Rita's labor-supply curve is downward-sloping, then for Rita
a. an increase in the wage creates an income effect that is greater than the substitution effect.
b. an increase in the wage creates a substitution effect that is greater than the income effect.
c. leisure and consumption are perfect substitutes
d. leisure and consumption are perfect complements.
a
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When real interest rates in other countries rise relative to those the United States, all else held constant, we would expect the U.S. dollar to ________.
A. inflate B. depreciate C. appreciate D. deflate
Along the long-run Phillips curve, the value of _____ remains constant
a. unemployment b. inflation c. the interest rate d. investment
The table to the right shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup and the price of a sandwich is $3. Keira has $18 to spend on these two goods. What is Keira's marginal utility per dollar spent on the third cup of soup?
A) 72 units of utility
B) 36 units of utility
C) 12 units of utility
D) 6 units of utility
The goldsmith's ability to create money was based on the fact that:
A. withdrawals of gold tended to exceed deposits of gold in any given time period. B. consumers and merchants preferred to use gold for transactions, rather than paper money. C. the goldsmith was required to keep 100 percent gold reserves. D. paper money in the form of gold receipts was rarely redeemed for gold.