Kip will work fewer hours if his salary increases. For Kip, the ________ effect must outweigh the ________ effect.

A. substitution; income
B. income; utility
C. income; substitution
D. utility; substitution

Answer: C

Economics

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When constructing an overall measure that shows inflation in the prices of many different items, economists consider: a. the average of the price changes of all goods

b. the total cost of purchasing a basket of goods and services. c. the changes in the prices of only luxury goods. d. the changes in the prices of only nondurable goods.

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Answer the following questions:

a. Describe the three types of unemployment. b. Explain why economists believe some types of unemployment are efficient and some are not. Which ones are which?

Economics