If the demand for olives falls when the price of cheese falls, then we know that cheese and olives are:
A. normal goods.
B. substitutes.
C. complements.
D. inferior goods.
Answer: B
You might also like to view...
The original intent of the Federal Reserve Act of 1913 was to provide the Fed with what role?
A) regulator of the banking system B) lender of last resort C) manage the exchange rate D) maintain a balanced budget
The market labor supply curve is the sum of
a. individual labor supply curves at each wage rate b. the upward-sloping portions of individual labor supply curves c. the downward-sloping portions of individual labor supply curves d. the average of all individual labor supply curves e. individual labor supply curves at each net utility for market work
Suppose Sally buys a Volvo because they are safe and, as a result, drives faster and pays less attention to other cars on the road. This is an example of
a. the winner's curse b. a positive externality c. irrational behavior d. moral hazard e. adverse selection
According to the ability-to-pay principle, it is fair for people to pay taxes based on their ability to handle the financial burden
a. True b. False Indicate whether the statement is true or false