When the price of gas goes down and the demand for tires goes up, a likely possibility is that tires and gas are:

What will be an ideal response?


complements.

Economics

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Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:

A. lenders want to be compensated for being unable to get their money back quickly. B. the opportunity cost increases over time. C. there's more uncertainty about potential future investment opportunities. D. All of these are true.

Economics

In intra-industry trade, the level of worker productivity is determined by

a. how firms engage in specific learning about specialized products, including taking advantage of economies of scale. b. how firms take advantage of climate or geography. c. how firms take advantage of the general level of education or skill. d. how firms take advantage of technological advances.

Economics

If we observe that Jamie's budget constraint has moved outward, then we know for certain that

a. her income must have increased. b. she will be indifferent between goods X and Y. c. the price of one or both of the goods must have decreased. d. she can reach a higher indifference curve.

Economics

If the natural rate of unemployment is 6%, but the Fed thinks it is 5% and attempts to use monetary policy to move unemployment from 6% to 5%, then in the short run which of the following variables will the Fed's policy raise?

a. the price level and real GDP b. the price level but not real GDP c. real GDP but not the price level d. neither real GDP nor the price level

Economics