The estimated demand for a good is 
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. This good and the related good R are
A. complements since the coefficient on M is positive.
B. substitutes since the coefficient on M is positive.
C. substitutes since the coefficient on PR is positive.
D. complements since the coefficient on PR is positive.
Answer: C
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The figure shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly and charges one price to all customers, then the consumer surplus is ________
A) $400 B) $900 C) $0 D) $200
The lemons problem is a situation of
A) perfect competition. B) asymmetric information. C) creative response. D) a natural monopoly.
What best describes the economic standing of the colonies on the eve of the Revolution?
a. The colonies were one of the richest nations in the world and had very little income inequality because of the many opportunities that existed. b. The colonies had a low per capita income and had little income inequality. c. The colonies were one of the richest nations in the world and had a significant amount of income inequality. d. The colonies had a low per capita income and had a significant amount of income inequality.
The GDP deflator is designed to adjust nominal GDP
a. for changes in the unemployment rate. b. for changes in prices. c. for problems that arise because of externalities. d. for changes in interest rates.