A good that is similar to another, and can be consumed in place of it, is called
A) a normal good.
B) an inferior good.
C) a complementary good.
D) a substitute good.
D
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Assuming the standard migration model is correct, estimates of the cost of moving can be as high as $300,000. What is likely the worst explanation for what this expense is so high?
A. People may place a high cost on leaving family and friends. B. People may place a high utility value on the cultural benefits and assimilation of their current location. C. People may attach a very high utility to the social amenities in one's birthplace. D. Moving companies typically charge tens of thousands of dollars to transport household goods from one location to another. E. The psychic costs of moving, for example, the uncertainty of making friends and adjusting to a new city, may be quite high for some people.
Successive downward movements along the demand curve for the product of a monopolist always generate successive
A) increases in the monopolist's marginal revenue. B) increases in the monopolist's average total costs. C) decreases in the additional per-unit costs incurred by the monopolist. D) decreases in the additional per-unit revenues earned by the monopolist.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A