If the demand for macaroni and cheese decreases as income increases, macaroni and cheese is a(n)
A. substitute good.
B. normal good.
C. complementary good.
D. inferior good.
Answer: D
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Antitrust laws are designed to
a. preserve competition. b. protect the environment. c. protect the public's trust in the government. d. all of the above.
To produce 150 units of output, a firm must use 3 employees per day. To produce 300 units of output, the firm must use 8 employees per day. Apparently, the firm is:
A. not using any fixed factors of production. B. experiencing negative returns. C. experiencing diminishing returns. D. producing in the long run.
In the short run, the price level is determined primarily by the supply of goods.
Answer the following statement true (T) or false (F)
Which of the following is TRUE according to the case study on U.S. / China trade presented in the chapter?
A) China has relative abundance in capital. B) China has relative abundance in skilled labor. C) The United States has relative scarcity in unskilled labor. D) The United States has relative scarcity in capital.