Giffen goods are inferior goods for which the income effect dominates the substitution effect
a. True
b. False
Indicate whether the statement is true or false
True
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If Happy Cows, a dairy firm, merges with Best Cartons, a manufacturer of dairy cartons, and the combined firm is able to reduce the number of executive managers, the merger created ________.
A) synergies B) managerial diseconomies C) technological interdependencies D) a hold-up problem
The state of Florida is considering putting an excise tax on either good X or good Y. An economist discovers the supply of good X is more elastic than the supply of good Y, while the demand elasticities are identical. Which good should Florida tax in order to minimize the deadweight loss of the tax?
The demand curve is downward sloping because
A) the price must rise to induce firms to increase quantity supplied. B) a reduction in the price of a good causes individuals to increase their purchase of that good. C) an increase in the price will cause a leftward shift in the demand curve. D) all of the above.
In the United States since 1970, the poverty rate for blacks has been about:
a. 1?2 percentage points higher than the poverty rate for whites. b. twice the poverty rate for whites. c. three times the poverty rate for whites. d. five times the poverty rate for whites.