If an increase in the price of good X leads to a decrease in the demand for good Y, then:
A. good X is a normal good and good Y is an inferior good.
B. good X and good Y are complements.
C. good X and good Y are normal goods.
D. good X and good Y are substitutes.
Answer: B
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If the price of TVs produced by XYZ-TV Company falls from increases from $1,000 to $1,250 per TV set, then the:
A. supply of labor to the XYZ-TV Company decreases. B. supply of labor to the XYZ-TV Company increases. C. demand for labor by the XYZ-TV Company decreases. D. demand for labor by the XYZ-TV Company increases.
Inflation targeting refers to conducting ________ policy so as to commit the central bank to achieving a ________
A) monetary; publicly announced level of inflation B) fiscal; publicly announced level of inflation C) fiscal; zero inflation rate D) monetary; zero inflation rate
The condition, MRS1,C = w, describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.
A weighted output maximization could serve as a reasonable pricing guideline
Indicate whether the statement is true or false