Two goods are substitutes when:
a. an increase in the supply of one good causes the demand for the other good to decrease.
b. an increase in the demand for one good causes the price of the other good to decrease.
c. an increase in the price of one good causes the demand for the other good to increase.
d. an increase in the price of one good causes the demand for the other good to decrease.
c
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Who knows how to measure the true cost of a pint of B-positive blood?
A) An economist B) A clerk at the blood bank C) Only the Surgeon General of the United States D) Any competent medical authority E) None of the above.
A tax is regressive if the average tax rate
A) increases as income increases. B) increases as income decreases. C) is negative. D) is less than one.
The development of interchangeable parts by Eli Whitney and Simeon North allowed:
a. a. firms to better implement continuous-process manufacturing. b. producers to reduce production costs and increase supply. c. for easier and cheaper repair of damaged goods. d. All of the above.
Which of the following statements is not correct?
a. Part of the deadweight loss associated with monopoly is measured by the monopolist's economic profit. b. Marginal cost is always less than average total cost in a natural monopoly. c. Discount coupons available free to the public are a type of price discrimination. d. Anti-trust laws make it harder for firms to create synergies.