Two goods are considered substitutes if
a. a decrease in the demand for one leads to a decrease in the supply of the other.
b. an increase in the demand for one leads to a decrease in the supply of the other.
c. an increase in the price of one leads to an increase in the demand for the other.
d. a decrease in the price of one leads to an increase in the demand for the other.
e. a decrease in the supply of one leads producers to switch to production of the other.
C
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A person can cause a negative externality by
a. becoming immunized b. talking loudly in a restaurant c. landscaping her lawn d. paying taxes e. attending school
Which of the following financial assets is most likely to have a higher amount of risk than the others?
A. Stocks B. Bonds C. Mutual funds D. Savings accounts
Choose the statement about an effective minimum wage that is correct.
A. The minimum wage is a fair rule because otherwise? low-skill workers would earn a lower wage. B. The minimum wage imposes a fair rule because it is legislated by the government and passed into law by majority rule. C. The result of the minimum wage is fair because those who find jobs are the least well off. D. The result of the minimum wage is unfair because only those people who have jobs and keep them benefit from the minimum wage.
The goals of monetary policy tend to be interrelated. For example, when the Fed pursues the goal of ________, it also can achieve the goal of ________ simultaneously
A) high employment; economic growth B) high employment; lowering government spending C) economic growth; a low current account deficit D) stability of financial markets; a low current account deficit