Suppose that when the price of oranges decreases, Sarita decreases her purchases of peaches. To Sarita,
A) oranges and peaches are complements.
B) oranges and peaches are inferior goods.
C) oranges and peaches are normal goods.
D) oranges and peaches are substitutes.
Answer: D
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Line item budgets _____
a. do not provide any insight into the effectiveness of expenditures b. are good for evaluating the effectiveness of programs c. allow expenditures to change gradually over time d. give insight into overall trends in agency expenditures
The Herfindahl-Hirschman index is a measure of
A) the profit margin of an industry. B) market size. C) the degree of collusion among firms in a market. D) the degree of concentration among firms in a market.
In a certain economy, when income is $100, consumer spending is $60 . The value of the multiplier for this economy is 4 . It follows that, when income is $101, consumer spending is
a. $60.25. b. $60.75. c. $61.33. d. $64.00.
This curve shows there is a(n) ______ relationship between the quantity of real GDP supplied and the overall price level.
a. neutral
b. positive
c. inverse
d. complementary