If Jeff's wage rate rises, he decides to work fewer hours. From this, we can infer that
A) for Jeff, the substitution effect is greater than the income effect.
B) for Jeff, the substitution effect is equal to the income effect.
C) for Jeff, the substitution effect is less than the income effect.
D) Jeff is a nitwit.
C
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In the United States, where do depository institutions hold their reserves?
A) either as vault cash or on reserve with Federal Reserve district banks B) All reserves must be held at a Federal Reserve district bank. C) in accounts with the U.S. Department of the Treasury D) in their own vaults in the form of precious metals such as gold and silver
Compared to private bargaining, using eminent domain to acquire land generally
A) keeps negotiation costs low. B) is more time consuming and less successful. C) reduces cooperative surplus. D) is frowned upon by the government.
If the Naval Research Laboratory fired a chemist and the Environmental Protection Agency hired her at the same salary, the net effect of these events would cause _____ in aggregate demand
a. an increase b. an increase c. a decrease d. a decrease e. no change
Consider two countries, Estonia and Ukraine. Estonia devotes a larger portion of its production to capital. All other things equal, which of the following statements is most likely true?
A. Estonia's production possibility frontier will shift up and out farther and faster than Ukraine's. B. Estonia will move up its production possibility curve faster than Ukraine. C. Estonia is a poorer country than Ukraine. D. Ukraine is producing inside its production possibility frontier, whereas Estonia is producing at a point on its production possibility frontier.