An income effect comes about because a price reduction of one product increases a consumer's real income.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The Federal Register
A) itemizes state and local government spending. B) is used to track immigration. C) publishes all the new federal regulatory rules. D) has decreased in size.
Each of the following, except one, would lead to a rightward shift of the labor supply curve in a particular industry. Which is the exception?
a. increased preference for this type of work b. increases in the demand for the good produced by labor c. increases in the size of the population d. reductions in the wage rates offered in alternative labor markets e. reductions in the costs of acquiring human capital
The demand for good X has been estimated to be ln Qxd = 100 - 2.5 ln PX + 4 ln PY + ln M. The own price elasticity of good X is
A. -2.5 B. 4.0 C. -2.5 percent D. 4.0 percent
Which of the following fiscal policy changes would be the most expansionary?
A. A $40 billion increase in government spending B. A $20 billion tax cut and $20 billion increase in government spending C. A $10 billion tax cut and $30 billion increase in government spending D. A $40 billion tax cut