The increase in the demand for widgets, shown in the figure above, is the result of a decrease in the price of McBoover devices. Therefore
A) widgets and McBoover devices are substitutes.
B) widgets and McBoover devices are complements.
C) widgets are a normal good.
D) McBoover devices are a normal good.
B
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Which of the following is an example of market "production," as used by economists?
A) Katrina works as a cashier at the local produce stand. B) Heidi makes a pizza for her family's dinner. C) Garvey takes out a low-cost government loan to start his pet-sitting business. D) The theatre and film studies department in Fine Art's College stages a play at the local theatre.
The Fed prefers to focus on inflation based on which price index?
A. Consumer price index B. GDP deflator C. Personal consumption expenditures price index D. Producer price index
Which of the following is most likely to reduce an individual's future spending?
A) Withdrawing money today B) Lending money today C) Paying back a loan in the future D) Withdrawing money in the future
Everything else held constant, if total consumption increases from $600 to $800 because of an increase of disposable income of $400, then the mpc is equal to
A) 0.2. B) 0.4. C) 0.5. D) 0.6.