If two goods are complementary, it means that when the price of one good increases, the demand for the other rises.
Answer the following statement true (T) or false (F)
False
When two goods are complementary, like gasoline and cars, an increase in the price of one good will cause the demand of the other good to fall. For example, if the price of gasoline rises, the demand for fossil fuel-burning cars will fall.
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Which of the following statements is true?
A) The relationship between labor demand and wage rate and the relationship between labor supply and wage rate are both positive. B) The relationship between labor demand and wage rate and the relationship between labor supply and wage rate are both negative. C) The relationship between labor demand and wage rate is positive, whereas the relationship between labor supply and wage rate is negative. D) The relationship between labor demand and wage rate is negative, whereas the relationship between labor supply and wage rate is positive.
Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution
A) will be zero. B) will be negative. C) will be positive. D) cannot be determined.
A monopolistic competitive firm is inefficient because the firm:
a. earns positive economic profit in the long run. b. is producing at an output corresponding to the condition that marginal cost equals price. c. is not maximizing its profit. d. produces an output where average total cost is not minimum.
The current exchange rate system is effectively a dirty float system
a. True b. False Indicate whether the statement is true or false