A person who wins a large sum of money in the state lottery is likely to
a. increase the amount of market work offered at each wage rate
b. not change the amount of work offered at each wage rate
c. decrease the amount of work offered at each wage rate
d. substitute market work for leisure time due to the substitution effect
e. substitute market work for leisure time due to the income effect
C
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As the money supply increases, interest rates _______ and aggregate demand shifts to the _______.
A. Increase; left B. Increase; right C. Decrease; left D. Decrease; right
One difficulty in managing common property resources is that
A) the monopoly firm that owns such a resource typically has great economic power, so that breaking it up into smaller firms is not practical. B) the monopoly firm that owns such a resource typically is a natural monopoly, so that it is undesirable to break it up into smaller firms. C) many common property resources are so small that management would have to be done on a micro level, greatly increasing government activity in the economy. D) many common property resources are so vast that single ownership or management of them is not practical, especially if they cross international borders. E) more and more of them come into being as pollution increases.