If two goods are close substitutes:
a. A decrease in the price of one will increase the demand for the other
b. An increase in the price of one will increase the demand for the other
c. An increase in the price of one will decrease the demand for the other
d. A decrease in the price of one will have no effect on the demand for the other
Answer: b. An increase in the price of one will increase the demand for the other
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Carve-out accounts
A. applies only to workers between 65 and 69 years of age. B. take funds away from the traditional social security system. C. has a tax rate of no more than 16.9 percent. D. all of these answer options are correct.
A sound legal system that protects individuals and their property,
a. cannot be expected until markets are already working well. b. is vital to the smooth operation of markets. c. is normally found in most economies of the world. d. is helpful for the rich, but harmful to the economic well-being of others.
Tying is a form of price discrimination in which one good called the ____ is tied to a second good called the ____.
Fill in the blank(s) with the appropriate word(s).
Why do many economists believe that tariffs are not necessary for national security reasons?
a. Tariffs lower unemployment in the affected industry but raise it elsewhere in the economy. b. Imposing tariffs increases dependence on domestic supplies and will deplete them faster. c. Young industries can be protected through subsidies and other means besides tariffs. d. Using foreign suppliers is most helpful during wartime, and tariffs can harm foreign allies.