If the utility for two goods "x" and "y" is measured as U = x + y, then it can be concluded that
A) "x" and "y" are perfect substitutes.
B) "x" and "y" are perfect complements.
C) "x" and "y" are both bads.
D) the indifference curves on the x,y graph will be upward sloping.
A
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Many state governments use lotteries to raise revenue. If a lottery is viewed as a tax, is it most likely a progressive tax or a regressive tax?
What information would you need to determine whether the burden of a lottery is progressive or regressive?
In a two-economy model of the United States and another large economy made up of the rest of the world, if desired saving by the rest of the world declined
A) U.S. investment would increase. B) U.S. saving would decrease. C) the world real interest rate would increase. D) the world real interest rate would decrease.
A shock that increases the costs of production is a
A) positive aggregate demand shock. B) positive aggregate supply shock. C) negative aggregate demand shock. D) negative aggregate supply shock.
The decision about whether to change prices frequently or infrequently is an application of the:
A. cost-benefit principle. B. scarcity principle. C. principle of increasing opportunity cost. D. principle of comparative advantage.