An increase in output due to either a positive supply or demand shock to production will lead to ________
A) an increase in the demand for labor and higher real wages
B) a decrease in the demand for labor and higher real wages
C) an increase in the demand for labor and lower real wages
D) a decrease in the demand for labor and lower real wages
A
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GDP excludes important factors that affect people's well-being, such as the value of:
A. leisure time. B. goods produced domestically but sold to foreigners. C. services purchased by households. D. government purchases of goods and services.
In the figure above, if the market price is $12, then the total consumer surplus is
A) $12. B) $10. C) minimized. D) $240. E) $480.
Which of the following factors is NOT part of the budget equation?
A) relative prices B) real income C) quantities of goods D) preferences
Horizontal equity incorporates the notion that
A. those earning higher incomes should pay more in taxes. B. those earning equal incomes should pay the same in taxes. C. taxes paid should be unassociated with income levels. D. there should be no excess burden created by a tax.