Which of the following are both correct?
a. Data show no correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the income effect.
b. Data show no correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the substitution effect.
c. Data show a positive correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the income effect.
d. Data show a positive correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the substitution effect.
c
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The costs of the actual bargaining process are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
At the efficient level of production, ________
A) producer surplus must be greater than consumer surplus B) consumer surplus must be greater than producer surplus C) there is no deadweight loss D) the market price is greater than the monopoly price