Suppose that when the price of ice cream increases, Liza decreases her purchase of hot fudge. To Liza
A) ice cream is a normal good and hot fudge is an inferior good.
B) ice cream and hot fudge and substitutes.
C) ice cream and hot fudge are normal goods.
D) ice cream and hot fudge are complements.
D
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What rule must be followed to obtain an efficient allocation of resources?
a. P = AC. b. P = MC. c. P = AR. d. MR = AC.
If the people who take early retirement are not counted in the working -age population, then
A) the labor force participation rate would be higher. B) the unemployment rate would be lower. C) the labor force participation rate would be less. D) the unemployment rate would be higher. E) none of the above.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, domestic producers would increase:
A. prices by $11. B. production by 75 units. C. prices by $5. D. production by 35 units.
An increase in the required reserve ratio ____ excess reserves and _____ the money supply.
A. increases; decreases B. decreases; increases C. decreases; decreases D. increases; increases