Assume the price of Coca-Cola increases. As a result, your real income decreases and you decrease the quantity of Coca-Cola purchased each month. This is an example of the:
A. income effect.
B. consumer price effect.
C. revenue effect.
D. substitution effect.
Answer: A
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Which of the following forms of unemployment probably imposes the greatest personal costs?
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) voluntary unemployment.
People who are more productive in market work
a. produce less for themselves b. spend more time engaged in nonmarket work c. work fewer hours in market work and enjoy more leisure d. are more likely to acquire skills and education through nonmarket work e. are attracted to market employment at lower wages
What do economists mean when they use the term 'ceteris paribus'?
What will be an ideal response?
Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero. B) Jackson's sunk cost was $100. C) Jackson's sunk cost was $200, and so was Wallace's. D) Wallace's sunk cost was $100. E) None of the above.