If Molly Bee increases her work hours when her wage increases, then
A) the substitution effect of the wage increase outweighs the income effect.
B) the income effect of the wage increase outweighs the substitution effect.
C) leisure is an inferior good to Molly.
D) Molly is spending beyond her means.
A
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What will an indifference curve look like between two commodities that are perfect complements, such as right shoes and left shoes?
What will be an ideal response?
Which of the following is an example of a foreign direct investment?
a. A French company buying some stocks of an American company b. An American company deciding to buy a Japanese firm c. A Chinese investor purchasing bonds issued by the United States government d. An English national deposits money in an American bank
Refer to the above table. The table gives the various combinations of Good A and Good B along Jane's indifference curve. The marginal rate of substitution when Jane goes from combination A to combination B is
A. 4:1. B. 3:1. C. 2:1. D. 0.
Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except
A) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high prices. B) for her, this is the most lucrative way to purchase the products that she wants to consume. C) her opportunity cost of pursuing another career is very low. D) she obviously has a comparative advantage in tattoo art.