For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result
A) the equilibrium price of B will fall and the equilibrium price of A will rise.
B) the equilibrium price of B will rise and the equilibrium price of A will fall.
C) the equilibrium prices of both A and B will rise.
D) the equilibrium prices of both A and B will fall.
B
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Graph of a labor market with effective minimum wage:
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
All of the following are economic functions of the government EXCEPT
A. providing public goods. B. providing a legal system. C. promoting competition in the market. D. determining the wage rate for most jobs.
Ad valorem taxation
A. refers to the personal income tax. B. is assessed by charging a tax rate as a fraction of the market price of a good. C. is used to tax goods but not services. D. is a tax that is applied only to imported goods.