If the demand for cucumbers falls when the price of tomatoes rises, then we know that tomatoes and cucumbers are:
A. substitutes
B. normal goods
C. inferior goods
D. complements
Answer: D
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In the above figure, an innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will
A) reduce the amount by which WH exceeds WL. B) increase the amount by which WH exceeds WL. C) shift the SH curve leftward. D) shift the SL curve rightward.
Assume an economy with a single bank, no excess reserves, no savings accounts, and no currency held by the public. With a required reserve ratio of .4, the demand deposit expansion multiplier is
A) 20. B) 10. C) 4. D) 2.5.
A carbon tax is an example of:
A. a Coase theorem solution. B. a Pigovian tax. C. a market failure. D. a Coase tax.
Exchange rates that are determined by the unregulated forces of supply and demand are
A. fixed exchange rates. B. managed exchange rates. C. pegged exchange rates. D. floating exchange rates.