Demand for inputs is a derived demand because
a. it is derived from the need for income.
b. it corresponds to the derived supply of the inputs.
c. producers want the input to produce the finished good.
d. it is downward sloping.
c
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When the government steps in to help determine prices, it is called
a. price ceilings. b. price floors. c. equilibrium prices. d. price control.
Which of the following is an example of a government program that provides cash assistance to the poor?
a. Temporary Assistance to Needy Families b. Medicaid c. food stamps d. public housing e. Head Start
Assume that the demand schedule for product C is downsloping. If the price of C falls from $2.00 to $1.75:
a. The demand for C will rise b. A smaller quantity of C will be demanded c. The demand for C will fall d. A larger quantity of C will be demanded
According to the income effect, an increase in the wage rate will lead the worker to
A. work more hours and leisure more hours. B. work more hours if leisure is a normal good. C. work fewer hours if leisure is a normal good. D. not change hours worked. E. work fewer hours if leisure is an inferior good.