When the price of milk rises, there is no change in the amount of dog food purchased. This is an example of:
A. indifference trade-off between the two goods.
B. the interaction between two correlated goods.
C. two items that are uncorrelated.
D. the value people place on dogs versus milk.
C. two items that are uncorrelated.
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The central fact of economics is
A. Production. B. Equilibrium. C. Efficiency. D. Scarcity.
If we graph marginal utility, the curve has a negative slope. This is because of the
A. optimal purchase rule. B. law of increasing costs. C. law of diminishing marginal utility. D. marginal rate of substitution.
A tax cut has a smaller impact on aggregate demand than an increase in government purchases of the same size because
A. A portion of the tax cut is saved. B. A portion of the tax cut is invested. C. The tax cut multiplier is equal to 1. D. Tax cuts do not increase disposable income.
which of the following resulted from the smoot-hawley trade bill of 1930
What will be an ideal response?