If the demand curve for product B shifts to the right as the price of product A declines, then:
A. both A and B are inferior goods.
B. A is a superior good and B is an inferior good.
C. A is an inferior good and B is a superior good.
D. A and B are complementary goods.
Answer: D
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In the short run, when the Fed increases the quantity of money, the
A) quantity demanded of money decreases. B) demand for money increases. C) nominal interest rate falls. D) demand for money decreases. E) price level decreases.
Last year in the United States, the price of snowboards rose by 5 percent and the price rise resulted in a 15 percent increase in the quantity supplied. This outcome is an indication that
A) the supply curve of snowboards shifted rightward. B) the supply of snowboards is price elastic. C) some firms entered into the snowboard industry. D) All of the above answers are correct.
Compared to proportional-representation systems, two-party systems are thought to:
A. lead to more diverse views in the policy process. B. create unwieldy combinations of policies within one platform. C. offer a wider variety of platforms among which voters can choose. D. be much less efficient and lead to very few compromises when voting.
In the long run aggregate:
A. demand tends to shift to the right. B. supply tends to shift to the left. C. demand is fixed. D. supply is fixed.