If the demand for cucumbers falls when the price of tomatoes rises, then we know that tomatoes and cucumbers are:
A. substitutes.
B. normal goods.
C. complements.
D. inferior goods.
Answer: C
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Profit-maximizing employment is the quantity of labor at which
A) marginal revenue product is equal to marginal factor cost. B) marginal revenue product is equal to product price. C) marginal factor cost is equal to marginal revenue. D) marginal factor product is equal to product price.
A World View article titled "Japan Sees Quake Damage Bill of Up to $309 Billion, Almost Four Katrinas" implies that the most likely impact of this destruction would be
A. A decrease in aggregate demand. B. A decrease in aggregate supply. C. An increase in aggregate demand. D. An increase in aggregate supply.
The health care system in the United Kingdom is referred to as ________, under which the government owns most of the hospitals and employs most of the doctors
A) an out-of-pocket system B) a single-payer health care system C) a universal health insurance system D) socialized medicine
What is the main problem with mild inflation according to some economists?
A. It reduces the size of the GDP gap B. It leads to unanticipated deflation C. It increases frictional and structural unemployment in the economy D. It diverts productive time towards activities to hedge against inflation