Suppose that when the price of oranges decreases, Sarita decreases her purchases of peaches. To Sarita
A) oranges and peaches are normal goods. B) oranges and peaches are substitutes.
C) oranges and peaches are complements. D) oranges and peaches are inferior goods.
B
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The process of steady increase in the quantity and quality of goods and services the economy can produce is called:
A. production. B. aggregation. C. economic growth. D. globalization.
The nation's supply of productive resources increases if
A) investment is greater than depreciation. B) investment equals depreciation. C) investment is less than depreciation. D) Both answers A and B can be correct. E) None of the above answers is correct because the relationship between investment and depreciation has no bearing on the amount of the nation's productive resources.
Suppose that studies show that a ten percent increase in the minimum wage decreases the number of minimum wage jobs by one percent. That would be the case if:
A. demand for labor is inelastic. B. demand for labor is elastic. C. supply of labor is inelastic. D. supply of labor is elastic.
A decline in business activity is called
A. a trough. B. a peak. C. an expansion. D. a recession.