If Alberto Reyes increases his work hours when his real wage increases, then
A) the substitution effect of the wage increase outweighs the income effect.
B) the income effect of the wage increase outweighs the substitution effect.
C) leisure is an inferior good to Alberto.
D) the substitution effect of the wage increase is completely offset by the income effect.
A
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The greater the positive cross elasticity of demand between products A and B, the: a. greater the degree to which they are substitutes
b. greater the degree to which they are complements. c. smaller the elasticity of demand for both products. d. greater will be both products responsiveness to changes in income.
The rule of 70 estimates how long it will take a country to:
A. double its real GDP per capita. B. achieve zero inflation. C. reach its maximum production capacity. D. double its output.