Describe how the substitution effect and the income effect influence decisions
What will be an ideal response?
-The substitution effect and the income effect describe two different ways that a consumer can change his or her spending patterns.
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Refer to the figure above. If the government sets the minimum wage rate at $35, the unemployment in the market will be:
A) 20 units of labor. B) 25 units of labor. C) 15 units of labor. D) 10 units of labor.
The production function is
a. the increase in the amount of output from an additional unit of labor. b. influenced by the productivity of workers. c. the marginal revenue produce minus the wage rate paid to workers. d. All of the above are correct.
A major corporation hires high school students on a part-time basis. It offers a reward of $5,000 to any of its high school seniors who graduate college in four years. What is the present value of that reward to a student who just finished her junior year of high school, assuming a nominal rate of interest of 8%?
What will be an ideal response?
The crowding of women, African-Americans, and certain ethnic groups into less desirable, lower-paying occupations is:
A. Employment discrimination B. Human capital discrimination C. Statistical discrimination D. Occupational segregation