If the federal government increases the amount of Social Security benefits for retired persons, then the
a. consumption schedule will shift upward.
b. aggregate demand curve will shift outward.
c. effect on equilibrium GDP will be the same as a cut in taxes.
d. All of the above are correct.
d
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Refer to Figure 17-3. Assume Panel B represents the labor supply curve. Which of the following statements about Panel B is true?
A) Panel B describes a situation in which the income effect dominates the substitution effect at every level of wages (segments i, ii, and iii). B) Panel B describes a situation in which the income effect dominates the substitution effect at low wages (segment i) and a situation in which the substitution effect dominates the income effect at very high wages (segment iii). C) Panel B describes a situation in which the income effect dominates the substitution effect at low wages (segment i) and again at very high wages (segment iii). D) Panel B describes a situation in which the substitution effect dominates the income effect at low wages (segment i).
The long-run industry supply curve in perfect competition is derived from the
A. short-run industry supply curve which shifts as new firms enter the industry. B. short-run industry supply curve which shifts as old firms exit the industry. C. freedom of firms from sunk costs so that new cost curves become long-run curves. D. All of the reasons listed.
If a good is inferior in an economic sense:
a. it is demand price elastic. b. it is demand price inelastic. c. the income elasticity of demand is negative. d. it is a low-quality good. e. it is not the highest quality good in its class.
All of the following are reasons for immigration to a foreign country, except that:
a. the domestic country may be politically repressive. b. there is an abundance of employment opportunities in the domestic country. c. the domestic country is economically stagnant. d. there is no scope for upward mobility in the domestic country. e. there are religious prosecutions.