An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.
Answer the following statement true (T) or false (F)
True
If the price of a good increases, consumers will respond by buying more of the relatively cheaper alternative (substitute).
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Identify the correct statement
a. When there are diminishing but positive returns the total product curve is falling. b. When there are diminishing but positive returns the total product curve is rising, at an increasing rate. c. When there are negative marginal returns, the total product curve is declining, but not necessarily negative. d. When there are negative marginal returns, the total product curve is rising.
When money is neutral, which of the following increases when the money supply growth rate increases?
a. real output growth b. real interest rates c. nominal interest rates d. the money supply divided by the price level
U.S. exports are goods and services
A. produced abroad and sold to foreigners. B. produced in the United States and sold to foreigners. C. produced abroad and sold to Americans. D. produced in the United States and sold to Americans.
The figure shows the market for college education. The efficient number of students is
A) less than 4 million. B) more than 4 million and less than 8 million. C) 4 million. D) 8 million. E) more than 8 million.