If too little of a good is being produced in the free market, the production of the good is likely to have a(n) ________ externality

The principle that states that what matters to people is the real value or purchasing power of money is the

A) marginal principle. B) spillover principle. C) real-nominal principle. D) principle of diminishing returns.

Refer to Figure 17-4. Which of the following is true if the wage rate increases from W0 to W1?

A) The supply curve is unit elastic. B) The income effect and the substitution effect are equal. C) The income effect is larger than the substitution effect. D) The substitution effect is larger than the income effect.