Suppose the demand for lawnmowers goes down when the price of gasoline goes up. We can say that these two goods are
A. complements.
B. perfect substitutes.
C. unrelated goods.
D. substitutes.
Answer: A
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When banks and other financial institutions become insolvent, ________
A) the problem of asymmetric information becomes more acute B) it is easier to distinguish the good creditors and borrowers from the bad C) surviving creditors will attract borrower-spenders by lowering the real interest rate D) the resulting increase in short-run aggregate supply will discourage investment
A graph that shows how the amount of advertising expenditure differs among various industries can be shown
A) by a trend-section graph. B) by a scatter diagram. C) by a time-series graph. D) as a trend. E) by a cross-section graph.
Private information is a situation in which
A) two parties to an exchange have information that is available to outsiders if they ask. B) one party to an exchange has information that is not available to the other. C) the marginal cost of a person's obtaining additional information is zero. D) the marginal cost of making information available to one more person is zero.
What is the difference between total cost and variable cost in the long run?
What will be an ideal response?