Assuming that shoe repair services are an inferior good, an increase in consumer income, other things being equal, will cause a(n):
a. leftward shift in the demand curve.
b. downward movement along the demand curve.
c. rightward shift in the demand curve.
d. upward movement along the demand curve.
a
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Explain the effects of the following actions on equilibrium income. 1 . Government purchases rise by $20 billion. 2 . Taxes fall by $20 billion. Assume that the marginal propensity to consume is 0.8
Which of the following offers a good example of a perfectly competitive market?
a. The market for postal services in the U.S. b. The market for luxury cars in the U.S. c. The market for water and sewer services in most U.S. towns and cities d. The market for basic commodities such as wheat, corn, and livestock
Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category?
a. the employer does not discriminate. b. the work is widely viewed as being stressful and dangerous. c. the job is widely viewed as prestigious. d. the employer provides child care on the premises.
An indifference curve represents combinations of two goods that provide an individual the same total utility.
Answer the following statement true (T) or false (F)