What kind of relationship exists between the price of gas and the quantity demanded for gas if the quantity demanded for gas falls when the price of gas increases?
A. Perverse
B. Direct
C. Normal
D. Inverse
Answer: D
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Which of the following is true of small changes in productivity growth rates? a. Small changes in productivity growth rates decrease the productivity of workers in the short run compounding the problem. b. The effects of small changes in productivity growth rates are compounded over the years leading to large cumulative effects. c. Small increases in productivity growth rates cause output to
fall. d. The effects of small changes in productivity growth rates are negligible. e. Small decreases in productivity growth rates cause output to increase.
The real wage will rise if the nominal wage
A. increases more rapidly than the prices of the goods and services it buys. B. falls at the same rate as the general price level. C. falls more rapidly than the prices of the goods and services it buys. D. increases at the same rate as labor productivity.
Which of the following countries is not a member of NAFTA?
A) Canada. B) The United States of America. C) Mexico. D) All three countries form part of NAFTA.
Sellers respond to a shortage by cutting their prices
a. True b. False Indicate whether the statement is true or false