Consumer demand for DVDs has increased over time because the price of DVD players has:
A) decreased, and DVD players and video cassette players are substitute goods.
B) decreased, and DVD players and video cassette players are complementary goods.
C) increased, and DVD players and video cassette players are substitute goods.
D) increased, and DVD players and video cassette players are complementary goods.
Answer: B) decreased, and DVD players and video cassette players are complementary goods.
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Why is it difficult to make accurate and valid comparisons of real GDP or GNP for different countries, and how do the World Bank and the IMF deal with these difficulties?
What will be an ideal response?
Archie wants to buy a steak for dinner. When he goes by the store, he sees that the price of steak has gone up a lot since the previous week. He decides to buy hot dogs instead. The __________ means that even though Archie has the same amount of money he did last week, that money won’t buy the same amount of steak today.
a. income effect b. substitution effect c. inflationary effect d. deflationary effect
Economist Jeffrey Sachs' big push theory involves:
A. giving a one-time large amount of aid upfront, ending the need for future aid. B. developed nations concertedly pushing developing nations into following certain beneficial policies. C. a concerted effort in many areas to break the poverty trap. D. developed nations pushing away less developed nations as trading partners because in general less developed nations cannot offer any benefits to developed nations.
National defense is an example of a _____________________.
Fill in the blank(s) with the appropriate word(s).