As wage rates rise to extremely high levels,
A. the income effect becomes stronger than the substitution effect.
B. the substitution effect becomes stronger than the income effect.
C. both the income effect and substitution effect become stronger.
D. both the income effect and substitution effect become weaker.
A. the income effect becomes stronger than the substitution effect.
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Economic discrimination against minorities exists when
A) minorities have less education and training than whites. B) minorities are paid less than whites on average. C) minorities are paid less than whites with the same education, experience, and training. D) minorities are in different occupations than whites.
Al, Ralph, and Stan are all intending to retire. Each currently has $1 million in assets. Al will earn 16% interest and retire in two years. Ralph will earn 8% interest and retire in four years. Stan will earn 4% interest and retire in eight years. Who will have the largest sum when he retires?
a. Al b. Ralph c. Stan d. They all retire with the same amount.
Which of the following would not be included in a definition of risk?
A. Risk has a time horizon. B. Risk is a measure of uncertainty. C. Risk can always be avoided at no cost. D. Risk usually involves some future payoff.
Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that:
A. decreases in the demand for computer memory have exceeded increases in supply. B. decreases in the supply of computer memory have exceeded increases in demand. C. increases in the demand for computer memory have exceeded increases in supply. D. increases in the supply of computer memory have exceeded increases in demand.