If A and B are complementary goods, a decrease in the price of good A would:
A. lead to an increase in demand for B.
B. have no effect on the quantity demanded of B.
C. lead to a decrease in demand for B.
D. none of the statements associated with this question are correct.
Answer: A
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A monopsony is a market structure in which there is a
A) single seller. B) single buyer. C) price floor set by a regulatory agency. D) price ceiling set by a regulatory agency.
Firms in monopolistic competition would
A) persistently realize economic profits in both the short and long run. B) may realize economic profits in the long run and normal profits in the short run. C) tend to incur persistent losses in both the short and long run. D) tend to realize economic profits in the short run and normal profits in the long run.
What economic insight is demonstrated through changing fashions in hairstyles or clothing?
a. Production improvements lead to more goods. b. New wants develop and replace the old ones. c. Goods are desirable but limited in supply. d. Intangible goods cost more than tangible ones.
Suppose that investment is $1,400 billion, saving is $1,300 billion, government expenditure on goods and services is $1,700 billion, exports are $1,800 billion, and imports are $2,600 billion.
Tax revenue is ________ billion dollars. The government budget balance is _________ billion dollars.