For a typical person who is currently earning a low wage rate, the
a. substitution effect of a wage rate increase usually is stronger than the income effect
b. substitution effect of a wage rate increase usually is weaker than the income effect
c. income effect of a wage rate increase is usually zero
d. substitution effect of a wage rate increase is usually zero
e. substitution and income effects of a wage rate increase tend to work in the same direction
A
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Commercial banks
A) buy private placements for their own portfolio of assets. B) help firms sell private placements. C) sell their own private placements. D) have nothing to do with private placements.
Which of the following is NOT a common characteristic of oligopoly?
A) strategic dependence among firms in the industry B) product differentiation C) barriers to entry D) marginal cost pricing.