The real-income effect is likely to be greater when
A) the substitution effect is not very large.
B) the marginal utility of the last unit is high.
C) the marginal utility per dollar spent on the last unit is high.
D) the good is an expensive good.
Answer: D
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Marginally attached workers are discouraged workers who have stopped their job search for reasons other than the lack of jobs
Indicate whether the statement is true or false
At college X and at college Y, students pay $3,000 less than the equilibrium tuition. If the supply of openings is the same at both colleges, it follows that a shortage of openings will be greater at
A) college X than college Y. B) college X than the surplus at college Y. C) college Y than the surplus at college X. D) college X than college Y if the demand is greater at college X. E) ?college X than college Y if the demand is less at college X.