Two goods are substitutes when a decrease in the price of one good
a. decreases the demand for the other good.
b. decreases the quantity demanded of the other good.
c. increases the demand for the other good.
d. increases the quantity demanded of the other good.
a
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An expansion occurs when the level of real GDP is
A) increasing. B) decreasing. C) at a cyclical peak. D) at a cyclical trough.
Gene's Car Wash is a natural monopoly. To wash 100 cars a week, if Gene is unregulated, he would charge a price of $10. Gene's long-run average cost for washing 100 cars is $8, his average variable cost is $6, and his marginal cost is constant at $4
If Gene was regulated using a marginal cost pricing rule, the price he would be allowed to charge to wash 100 cars is A) $10. B) $8. C) $6. D) $4.
In a market system, the costs associated with exchanging goods are known as
A. voluntary costs. B. opportunity costs. C. signaling costs. D. transaction costs.
The duration of unemployment tends to
A. increase when business activity decreases. B. increase when the labor force shrinks. C. stay consistently the same over long periods of time. D. increase when employment increases.