For a normal good, the substitution and income effects of a price decrease work in the same direction to increase the quantity demanded of that good
a. True
b. False
A
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The absolute price of a commodity is the amount of
a. other goods that must be sacrificed in order to purchase one unit of the commodity. b. resources required to produce one unit of the commodity. c. currency needed to purchase one unit of the commodity. d. time and effort used to develop a market for the buying and selling of the commodity.
State and local governments finance expenditures mainly from
A) tax revenue. B) government bonds issued at the state level. C) funds provided by the federal government. D) private bank loans. E) lottery funds.
In the monetarist view, if there is an increase in money growth then
a. the money supply and inflation will grow proportionally, with no effect on output and employment. b. the money supply grows faster than the inflation rate, with unfavorable effects on output and employment. c. the money supply grows faster than the inflation rate, leading to an increase in output and employment in the short-run. d. there will be no effect on output, employment, or inflation, in the long-run. e. both c and d.
Describe how the risk premium for a person with a convex utility function is determined
What will be an ideal response?