Suppose one observes that when the price of peanut butter increases, the demand for jelly increases. One should conclude that:
A. peanut butter and jelly are inferior goods.
B. peanut butter and jelly are normal goods.
C. peanut butter and jelly are substitutes.
D. peanut butter and jelly are complements.
Answer: C
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) What part of domestic output in country B is the total wage bill or total wage income before and after the emigration?
A. Area 0vqtand area 0wrt, respectively
B. Area 0vqt and area 0wsu, respectively
C. Area 0wsu and area 0vqt, respectively
D. Area 0wsu and area 0wrt, respectively
The price of lumber increased by 10 percent and the quantity supplied increased by 20 percent. The supply of lumber is
A) inelastic. B) perfectly elastic. C) perfectly inelastic. D) unit elastic. E) elastic.
A tradesman who purchases diamonds in a country where the price is low and sells them in another country where the price is high, can be said to be practicing:
a. arbitrage. b. speculation. c. derivatives trading. d. forecasting.
The question of how a tax change might impact U.S. economic output is most closely associated with the study of
A) microeconomics. B) managerial economics. C) macroeconomics. D) consumer economics.