An increase in the price of product B leads to an increase in the demand for product C. This indicates that products B and C are
A. normal goods.
B. inferior goods.
C. complementary goods.
D. substitute goods.
Answer: D
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The aggregate supply curve reflects the relationship between the price:
a. of a particular good and the quantity supplied by all firms producing that good. b. of a particular good and the quantity supplied by the aggregate economy. c. level and the quantity supplied of all goods in the economy. d. level and the quantity of all goods purchased in the economy.
All of the following are true about a monopolist except:
A. Average and marginal revenues are not the same. B. Marginal revenue is greater than price. C. Marginal revenue can be negative. D. Marginal revenue decreases with increases in output.
Which economic perspective would be most closely associated with the view that discretionary monetary policy is an effective force for stabilizing the economy?
A. Monetarism B. Mainstream economics C. Rational expectations D. New classical economics
Firms in long-run perfect competition produce at
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) no returns to scale.