Which of the following occurs simultaneously with an income effect?

The most common pattern for marginal utility is ____ diminishing marginal utility a. budget constraint model a long-term perspective theoretical model substitute consumption A tax system in which the rich pay a higher percentage of their income in taxes, father than a higher absolute amount is known as a ____ Which of the following occurs simultaneously with an income effect? backward-bending supply curve Stiffen good effect preferences effect substitution effect

The most common pattern for marginal utility is ____ diminishing marginal utility a. budget constraint model a long-term perspective theoretical model substitute consumption A tax system in which the rich pay a higher percentage of their income in taxes, father than a higher absolute amount is known as a ____ Which of the following occurs simultaneously with an income effect? backward-bending supply curve Stiffen good effect preferences effect substitution effect

Answer

1) The most common pattern for marginal utility is

Solution: diminishing marginal utility

Explanation: In economics, diminishing returns (also known as
diminishing marginal returns) refer to a decrease in the marginal
(per-unit) output of a production process as the amount of a single
factor in the process production is increased, ceteris paribus

2) A tax system in which a rich pay higher percentage of their
income taxes, rather than a higher absolute amount is known as

Solution: progressive tax system

Explanation: A progressive tax system refers to a system in
which the tax rate increases as the taxable amount

3) Which of the following occurs simultaneously with an income
effect?

Solution: substitution effect

Explanation: The substitution effect occurs when there is a
change in quantity demanded by a buyer because of the change in the
price of one good relative to another good

4) Suppose that new high technology farming equipment is
developed. These new machines are substitutes for low income
workers such as farm labor, but they are complements for
high-income workers such as farm technicians and farm owners. This
new technology will ______ employment and _____ wages for
high-income workers

Solution: increase, increase

Explanation: As the new technology are substitutes for low
income workers so will increase employment and as are complements
for high-income workers thus would improve wages