An increase in the price of a good normally increases the
a. demand for its substitutes
b. supply of complements for the good
c. purchasing power of consumers' dollar incomes
d. money income of the consumer
e. quantity demanded of all goods that are unrelated to the good in question
A
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The town of Saddle Peak has a fixed supply of mountain view lots. In this case, the price per square foot of mountain view lots is
A) determined only by demand. B) negotiated by environmental groups and property developers. C) determined only by supply. D) set by government officials of Saddle Peak.
Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation
Indicate whether the statement is true or false
Which of the following is the most likely cause of most recessions according to the new classical model?
a. a change in the money supply. b. an increase in taxation and government spending. c. a fall in expected profits. d. a rise in the price of oil. e. an unanticipated change in the money supply.
Under present U.S. federal law, which one of the following is a government-inhibited good?
A) housing B) medical care C) marijuana D) education