When the price of compact disc players decreases, the demand for compact discs rises while the demand for cassette tapes decreases. What does this imply about the relationship between compact disc players, compact discs, and cassette tapes?
What will be an ideal response?
Compact disc players and compact discs must be complements. Compact disc players and cassette tapes must be substitutes.
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The basic purpose of financial markets is:
A. match people who want money to spend now with people who want to save their money for later. B. buy and sell different currencies in order to make a profit. C. sell commodities to firms as inputs. D. buy commodities from firms and the government to sell to the public.
_____ is the largest social insurance program in the U.S
a. Medicaid b. The food stamp program c. Supplementary security insurance d. The Head Start program e. Old-Age, Survivors, and Disability Insurance
In a constant-cost industry, an increase in output that increases the demand for resources used by the industry
a. is likely to result in higher prices for at least some resources. b. causes the firm's cost curves to shift downward. c. causes the demand curve for the industry to rise. d. is not likely to result in higher prices for resources.
If consumption is $340 and saving is $20, then disposable income
A. Is $320. B. Is $360. C. Is $340. D. Cannot be determined from the information given.