Assume that the income effect dominates the substitution effect. When workers experience a ________ price surprise, they ________ perceive that their real wage rate has ________, which leads them to work fewer hours.
A. negative; incorrectly; risen
B. negative; correctly; fallen
C. positive; correctly; risen
D. positive; incorrectly; risen
Answer: D
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Which of the following is NOT a private cost?
A) the health insurance costs a firm must pay for its employees B) the pollution caused by a firm dumping its wastes into the river C) the coffee pot that Jan dropped and broke this morning D) the amount that a firm must pay for raw materials to make its product
In retaliation for U.S. support for Israel during the Arab-Israeli War, OPEC countries stopped selling oil to the United States. For the United States, this embargo caused the
a. demand curve for oil to shift out. b. demand curve for oil to shift in. c. supply curve of oil to shift out. d. supply curve of oil to shift in.
Ten years after the Rio Summit,
a. the World Summit on Sustainable Development was held in Johannesburg b. the Rio Declaration was adopted c. worldwide interest in the summit’s motivating principles had waned d. participating nations agreed to abandon the original goals of Agenda 21
Even at higher levels of __________, people will still face spending trade-offs, choices, and opportunity costs.
a. savings b. supply c. income d. demand