Orange juice and grapefruit juice are likely to be
A. inferior goods.
B. substitutes for one another.
C. complementary to one another.
D. all of the above.
Answer: B
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Juan and Sophia have decided to stop studying economics and get a bite to eat. Juan wants to go for a pizza and Sophia wants a hamburger. They decide to go for pizza. What can we conclude from this?
A) Juan always gets more utility from pizza than Sophia does. B) Sophia gets less utility from pizza than she could from a hamburger. C) Sophia will get negative utility from the pizza. D) Utility analysis does not work here since Sophia did not eat a hamburger.
To decrease the money supply using the reserve requirements, what would the Fed typically do?
A) let each bank get less currency from the Treasury B) raise the reserve requirement for banks C) reduce the reserve requirement for banks D) make each bank voluntarily set its own reserve levels
If the domestic prices for traded goods rises 5% in Japan and rises 7% the US over the same period, what would happened to the Yen/US dollar exchange rate? HINT: S1/S0 = (1+?h) / (1+ ?f) where S0 is the direct quote of the yen at time 0, the current period
a. The direct quote of the yen ($/¥) rises, and the value of the dollar falls. b. The direct quote of the yen ($/¥) falls, and the value of the dollar rises. c. The direct quote of the yen would remain the same. d. Purchasing power parity does not apply to inflation rates. e. Both a and d.
If a firm enjoys a revenue of $500 from two units of output and $600 from three units of output, then its marginal revenue must be rising
a. True b. False