The substitution effect occurs when a good becomes more expensive and people seek out alternative goods
a. True
b. False
Indicate whether the statement is true or false
True
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From 1970 to 2012, the Gini coefficient in the United States has
A) steadily increased. B) remained relatively unchanged. C) dramatically decreased. D) more than doubled.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
Dave's opportunity cost of producing 1 pound of corn is ______ pound(s) of green beans
Use the following table to answer the question below.
| Dave's Production Possibilities Schedule | |
| Pounds of Green Beans | Pounds of Corn |
| 0 | 160 |
| 20 | 120 |
| 40 | 80 |
| 60 | 40 |
| 80 | 0 |
A. 4
B. 2
C. 1
D. 1/2
Total surplus can be increased if:
A. deadweight loss is increased. B. new technology is banned. C. new markets are created. D. All of these can increase total surplus.