If the price of one good increases, and as a result the demand for another related good falls, the goods are
A) substitutes.
B) normal goods.
C) complements.
D) inferior goods.
Answer: C
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If prices rise within a country, then, other things equal, the value of a unit of domestic currency will:
a. rise in both the domestic and the foreign exchange markets. b. fall in both the domestic and the foreign exchange markets. c. rise in the domestic market and fall in the foreign exchange market. d. fall in the domestic market and rise in the foreign exchange market. e. fluctuate unpredictably in both domestic and foreign exchange markets.
The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require
A. higher consumption in the future in order to increase imports. B. lower consumption in the future in order to repay interest and principal to foreigners. C. lower consumption in the future in order to finance increased investment. D. higher budget deficits in the future in order to increase the trade surplus.
Pay-as-you-throw (PAYT) programs, also known as unit pricing schemes,
Use the following forany or all of Questions 11 through 13 below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston. MSC = 1.5 + 1.25Q MSB = 30 – 2.5Q MEC= 0.75Q MEB= 0 whereQ is the number of trash containers serviced per household per month. a. are uncommon in the United States b. lack incentives because they are strictly command-and-control in approach c. can be implemented using flat rate pricing or variable rate pricing d. none of the above
Which of the following is correct?
a. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits. b. A bank's deposits at the Federal Reserve counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits. c. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits. d. A bank's deposits at the Federal Reserve does not count as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.