The price of peanut butter falls and as a result the demand for jelly increases. We can conclude that:
a. peanut butter and jelly are substitutes
b. peanut butter and jelly are complements.
c. peanut butter and jelly are inferior goods.
d. the marginal value of jelly is greater than the marginal value of peanut butter.
b
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Which of the following is true about a nation’s production possibilities curve?
a. a point inside the curve is a combination of products that is currently impossible to produce. b. a point outside the curve is a combination of products that is below capacity. c. a rightward shift of the curve illustrates economic growth. d. full employment is illustrated by a point inside the curve.
Relative to the United States, the European Union antitrust law focuses more on all of the following except which one?
A) ethics B) furthering the social interest C) the leveling of the competitive playing field D) fairness
Refer to the figure below. If the original curves are MB1 and MC1, rational consumers will gather ________ units of information.
A. 4 B. 9 C. 6 D. 5
A cost of an activity that falls on people not engaged in the activity is called a(n):
A. negative externality. B. prisoner's dilemma. C. positive externality. D. external benefit.