You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that
A) salsa and tortilla chips are substitutes.
B) salsa and potato chips are complements.
C) tortilla chips and potato chips are complements.
D) salsa and tortilla chips are complements.
D
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"Ricardian equivalence" is the proposition that it does not matter whether government expenditure is financed by taxes or by issuing debt
Indicate whether the statement is true or false
Neutral policy with respect to choice architecture is:
A. not a clear concept across different choice scenarios. B. well established in all choice scenarios. C. the goal of all choice architects. D. generally regulated by state and federal government.
Monopolistic competition provides the benefit of product variety but at the cost of productive inefficiency.
True or False
In order to derive the market supply curve from individual supply curves, we add up the:
A. Various prices that individual sellers are charging for the product B. Various quantities that individual sellers want to sell at specific price levels C. Total number of sellers in the market at a given time D. Costs that all individual sellers incur in producing the product