The price of chicken increases as the result of higher beef prices. This indicates that
a. chicken and beef are substitutes.
b. chicken and beef are complements.
c. the market demand for beef is inelastic.
d. the market demand for chicken is elastic.
A
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Figure 4.3 illustrates the demand for tacos. A successful advertising campaign to sell tacos would bring about a movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
The table above lists the market shares of the twenty makers of personal computers. The Herfindahl-Hirschman Index for this industry equals
A) 5. B) 250. C) 1250. D) 500.
An inflation forecast developed in a Keynesian framework is likely to focus on
A) Federal Reserve policy. B) international gold movements. C) household and business spending decisions. D) the velocity of money.
Define the following terms carefully: (a) Full employment (b) Purchasing power of money (c) Real wage rate (d) Relative price