Assume that Zark and Bora are related products on the planet Zappo. It is observed that when the price of Zark falls (due to the cyclical nature of the Zark harvest), the demand for Bora quickly rises. On the basis of this information which of the following can be considered true?
a. Zark and Bora are substitutes.
b. Zark and Bora are complements.
c. Zark and Bora are both luxury goods.
d. Zark and Bora are inferior goods.
b
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Suppose that there is a negative aggregate demand shock and the central bank commits to an inflation rate target. If the commitment is credible, then
A) the public's expected inflation will remain unchanged. B) the short-run aggregate supply curve will rise. C) over time inflation will fall. D) all of the above. E) both A and C.
Which of the following is an example of the "metering" strategy
a. A doll company selling dolls at cost but charging high margins on doll accessories b. A cell phone company offers free locked in phones but charges high prices per call c. A catering company pays its chefs higher wages to make sure that the bargain meals are just slightly burnt d. Only A&B
Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million. The unemployment rate is __________ percent and the employment rate is __________ percent
A) 10; 69 B) 8; 57.9 C) 18.5; 57.9 D) 18.5; 81.5 E) 12; 88
The similarity between markets for common resources and markets with externalities is that:
A. generally we get an oversupply at market. B. the price that competitive firms charge does not capture the true costs and benefits of consumption. C. the equilibrium quantity is too high in terms of society. D. government involvement is needed to reach an efficient outcome.