Fill in the blanks. For a normal good, the income effect is _________, and the substitution effect is _______.
a. positive; positive
b. positive; negative
c. negative; positive
d. negative; negative
d. negative; negative
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Which of the following is a characteristic of a market where a price floor is in place?
A. The market quantity demanded exceeds the market quantity supplied. B. Fewer regulations are needed since the government sets the price. C. Fewer units are purchased than would be the case without the price floor. D. A smaller number of sellers than in markets without price floors.
If a number greater than the mean (average) of a series of observations is added to the series, the new mean is:
A) greater than the original mean. B) smaller than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.
In the prisoners' dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
Excess burden is largest with
A. lump-sum taxes. B. unit taxes. C. no taxes. D. all of these answer options are correct.