Susie wins $2 million in her state's lottery. If Susie keeps working after she wins the money, we can infer that the income effect is larger than the substitution effect for her
a. True
b. False
Indicate whether the statement is true or false
False
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The percentage markups which sellers use
A) are based on their estimates or guesses about marginal cost and marginal revenue for particular goods. B) are between 10 and 15 percent. C) are the same on all products of a single firm. D) differ between products but are the same on average for all firms.
Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A) The economy has acquired new resources that are well suited for producing bread. B) Land that was once used to graze sheep is now being used to grow wheat. C) Resources are becoming unemployed. D) The technology for growing wheat has improved.
Persuasive advertising is used to
A) induce a consumer to try a product and discover a previously unknown taste for it. B) promote only used goods. C) sell to an established clientele. D) cut costs.
Fiscal policy aims to influence the overall health of the economy through changes in:
a. the money supply. b. government spending and tax rates. c. interest rates. d. international exchange rates. e. All of the above.