In a model with leisure hours and a composite consumption good, you cannot tell whether workers will work more or less if tastes are quasilinear in the consumption good.
Answer the following statement true (T) or false (F)
True
Rationale: The substitution effect will cause workers to work less -- but leisure is a normal good (since tastes are quasilinear in consumption), and this implies a wealth effect in the other direction.
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As a measure of competition in an industry, concentration ratios have several flaws. One of these flaws is that concentration ratios
A) are calculated for the national market, even though competition in some industries is mainly local. B) assume that all industries have low barriers to entry. C) assume that a ratio less than 40 percent means an industry is perfectly competitive. D) assume there are only four firms in an industry.
State whether the following statement is true or false AND explain why: "An increase in the interest rate paid on excess reserves will always cause an increase in the federal reserve funds rate."
Indicate whether the statement is true or false