Give an example of two products that are complements. Explain why they are complements.
What will be an ideal response?
Should show a thorough understanding of complements. For example, rose bushes and rose trimmers are complements because they are used together. As a result, if the price of rose bushes increases, then the demand for rose trimmers will decrease. Likewise, if the price of rose bushes decreases, then the demand for rose trimmers will increase.
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If a bank had demand deposits of $80 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?
a. $20 million b. $40 million c. $60 million d. $80 million
The major difference between a proprietorship and a partnership is the
a. double taxation laws b. change in the liability of the owners c. profit earned d. number of owners e. ownership control over day-to-day operations
If the United States imports televisions and the U.S. government imposes a tariff on televisions, then
a. total surplus in the American television market decreases. b. producer surplus in the American television market increases. c. U.S. imports of foreign televisions decrease. d. All of the above are correct.
In the short run, an increase in the quantity of money normally
A. has no effect; in the long run, V will increase. B. has no effect; in the long run, V will decrease. C. results in an increase in velocity. D. results in a decrease in velocity.