The substitution effect that results from a decrease in total factor productivity
A) substitutes lump sum taxes for taxes on firms.
B) is the substitution of consumption for leisure.
C) involves substitution of government spending for consumption.
D) is zero.
E) is a shift from the labour input to the capital input.
Correct Answer:
Verified
Q9: An externality is any activity for which
Q10: A Pareto optimum is a point that
A)a
Q11: Intertemporal substitution of labour suggests that
A)in the
Q12: The real wage is determined by
A)-(slope of
Q13: A competitive equilibrium is Pareto-optimal if there
Q15: According to the Laffer Curve
A)higher tax rates
Q16: The first fundamental theorem of welfare economics
Q17: The government spending multiplier is
A)the ratio of
Q18: Much of the writings of Adam Smith
Q19: The concept of Pareto optimality is a
A)useful
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents