If the price of "X" increases and you buy less "Y," then
A. "X" and "Y" are substitutes, and the price of "Y" will increase.
B. "X" and "Y" are substitutes, and the price of "Y" will decrease.
C. "X" and "Y" are complements, and the price of "Y" will increase.
D. "X" and "Y" are complements, and the price of "Y" will decrease.
Answer: D
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Frictional unemployment refers to unemployment that is a result of: a. a mismatch of skills
b. being out of work 27 weeks or longer. c. job search. d. seasonal decreases in demand for labor. e. a recession in the economy.
Economists speaking like scientists make
a. positive statements. b. prescriptive statements. c. claims about how the world should be. d. More than one of the above is correct.
People who claim to have the ability to accurately predict the future prices of stocks:
A. are strong advocates of the theory of efficient markets. B. are always psychologists. C. should be looked at with skepticism, unless they have information not available to others. D. are unusually lucky, and should be listened to intently.
Refer to the graph shown. Total surplus is maximized when:
A. producers are able to charge a price above P1. B. excess demand is maximized. C. consumers are able to pay a price below P1. D. the market is in equilibrium at price P1 and quantity Q1.