A stock market crash that reduces the value of an individual's trust fund would tend to
a. increase her supply of labor if the substitution effect outweighs the income effect
b. decrease her supply of labor if the substitution effect outweighs the income effect
c. have no impact on her labor supply decision
d. increase her supply of labor
e. decrease her supply of labor
D
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During a recession, unemployment rises and total output of the economy rises.
Answer the following statement true (T) or false (F)
Conscious manipulation of the interest rate causes it to become a less effective tool in allocating resources among time periods
a. True b. False Indicate whether the statement is true or false
On a bar graph comparing a firm's economic profit with its accounting profit, it will always be TRUE that
A. opportunity costs will be missing from the column depicting accounting profit. B. total revenue will be greater in the column depicting accounting profit. C. explicit costs will be greater in the column representing accounting profit. D. explicit costs will be greater in the column representing economic profit.
If MUx/Px exceeds MUy/Py, then a household can increase its utility by spending more on Y and less on X.
Answer the following statement true (T) or false (F)