Complements
What will be an ideal response?
Goods that are normally consumed together
*Ex. peanut butter and jelly
You might also like to view...
Refer to Edgeworth Box Economy. Based on the situation shown in the diagram, we can conclude that
The accompanying diagram shows an Edgeworth box economy. The initial endowment is point O. At current relative prices, Augie chooses point X and Bev chooses point Y.
a. Augie and Bev have reached a competitive equilibrium.
b. the relative price of food must rise to clear the market.
c. both point X and point Y must lie on the contract curve.
d. there is a shortage of clothing and a surplus of food.
Suppose that Megabucks Corporation is earning an economic profit of $4,000 through the sale of a product. If the price of the product is $6 per unit and its ATC is $4 per unit, Megabucks must be producing 8,000 units
a. True b. False Indicate whether the statement is true or false
Evidence shows that children from poor communities typically have:
A. reduced opportunities to acquire human capital. B. equal opportunities to acquire human capital, and choose to acquire more on average than others. C. increased opportunities to acquire human capital. D. equal opportunities to acquire human capital, but choose not to acquire as much on average than others.
A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.
a. true b. false