Suppose the price of rice increases and you view rice as an inferior good. The substitution effect results in a ________ change in rice consumption, and the income effect leads to a ________ change in rice consumption
A) positive, positive
B) positive, negative
C) negative, positive
D) negative, negative
C
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People who are working up to 34 hours per week but would like to work more are considered
A) involuntary part-time workers. B) discouraged workers. C) job leavers. D) job seekers. E) unemployed.
When a monopolist sells positive levels of output, its demand curve:
A) lies below its marginal revenue curve. B) lies above its marginal revenue curve. C) and marginal revenue curve overlap D) is vertical while its marginal revenue curve is horizontal.
When government increases a fixed tax, consumption schedule
a. shifts downward in a parallel manner. b. shifts upward in a parallel manner. c. becomes horizontal. d. becomes vertical.
A theory or a model
A. is a detailed analysis of what ought to be. B. captures all aspects of the real world. C. is a simplified, abstract view of reality. D. is based on each economist's value judgments.