The Wall Street Journal reports that "hard times aid poultry companies as people eat cheaper fowl." In the language of economists, this means
a. chicken is an inferior good.
b. chicken has a negative substitution effect.
c. chicken has a positive substitution effect.
d. people's tastes change during recessions.
e. chicken has a positive income effect.
a
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The ability of the federal government to regulate the distribution of income among families and individuals is
A) enormous, as shown by the redistribution that has occurred from the rich to the poor since World War II. B) largely limited to what can be accomplished through revisions in the rules of the game. C) unlimited because government is sovereign. D) virtually unlimited because few people would be willing to emigrate merely in order to escape taxation.
Which of the following is not an example of a noncooperative oligopoly model?
A) The kinked demand curve model. B) The model of limit pricing. C) The prisoner's dilemma game. D) The cartel model.