Which of the following best represents the effects of a decrease in the price of tea?
a. A leftward shift in the demand for tea
b. A downward movement along the demand curve for tea.
c. A rightward shift in the demand for tea.
d. An upward movement along the demand curve for tea.
b
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If the cross elasticity of demand for DVD players and DVDs equals -2, then the products are
A) unrelated. B) complements. C) inferior goods. D) substitutes. E) normal goods.
Although accounts in commercial banks are covered by government insurance, accounts in other financial institutions are not
If the government decides to bail out these other types of financial institutions during times of a financial crisis, it risks increasing the level of ________ in the financial system. A) moral hazard B) liquidity C) asset deflation D) insolvency
An advertising executive comes up with the slogan “Put the pep back in your life” to show how the Pep nutritional bar is more effective than many similar bars. The executive is taking part in ______.
a. a monopoly b. an oligopoly c. perfect competition d. monopolistic competition
Which of the following is an aggregate?
A. the number of shoes in one man's closet B. the bushels of apples one farmer sells C. the total production of all goods and services D. the price of a particular textbook