If the price of one good goes up and the demand of a related good goes down, the two goods are
A) complements.
B) substitutes.
C) inferior goods.
D) normal goods.
Answer: A
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Studies and recent experience suggest that there is considerable potential for substitution between doctors and nurses in the production of health care services
Indicate whether the statement is true or false
Social disapproval is likely to be more effective:
A. in a small town than a large city. B. in solving a free rider problem than a tragedy of the commons problem. C. than taxation. D. when community members have only spurious relationships with others in the area.
The production function (or output per laborer) curve is
a. upward sloping and arched to reflect the law of constant returns b. upward sloping and arched to reflect the law of diminishing returns c. downward sloping and arched to reflect the law of increasing returns d. downward sloping and arched to reflect the law of diminishing returns e. horizontal, its level depending on the capital output ratio
If Country A's central bank wanted to increase the value of its currency, its reserves account in the balance of payments would:
a. Become more negative. b. Become more positive. c. Not change. d. Change only if there were no offsetting changes in the net errors and omissions account.