Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy,
A) pickles and ketchup are complements.
B) pickles and ketchup and substitutes.
C) pickles and ketchup are normal goods.
D) pickles are a normal good and ketchup is an inferior good.
Answer: A
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In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad. B) current account deficit, requiring capital inflows from abroad. C) current account surplus, requiring capital outflows. D) current account deficit, requiring capital outflows.
Explain why consumers benefit from a merger between a monopoly producer and its monopoly supplier of labor
What will be an ideal response?
A dedicated professor loves being in the classroom and would teach for $50,000 per year, but he is actually paid $60,000 per year. This individual
A) receives economic rent of $1100,000. B) has an opportunity cost of $110,000. C) has an opportunity cost of $50,000. D) receives economic rent of $10,000.
Which of the following functions is not performed by financial markets?
a. facilitating large-scale production b. reallocating spending across time c. reducing risk through diversification d. discovering new production techniques e. disciplining management of corporations