An inverse relationship occurs between two variables when as one goes:
A. up the other does not change.
B. up the other goes down.
C. up the other goes up.
D. down the other goes down.
Answer: B
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Indicate whether the statement is true or false
The equilibrium rental income paid to landowners at any point in time equals the
a. purchase price of land. b. value of the marginal product of land. c. marginal product of land. d. wage paid to laborers.
The WTO (under the GATT agreement) provides that nations may enter into regional trade agreements as long as they:
a. limit such agreements to one. b. extend the provisions to all other nations in the WTO. c. do not jointly increase tariffs against outside countries. d. make sure they include smaller nations in their regions.
If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus, then the economist is assuming
A. the price of cars must be decreasing. B. all other things remain constant. C. the price of gas must be decreasing. D. the interest rate on car loans must be decreasing.