Skis and snowboards are close substitute goods. A ________ in the price of snowboards would tend to ________ the demand for ________
A) rise; increase; snowboards
B) rise; decrease; snowboards
C) rise; decrease; skis
D) rise; increase; skis
E) fall; increase; snowboards
D
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Economic growth in India has averaged about 8.5 percent in recent years and while inflation averaged almost 9 percent. The AS-AD model shows this process as
A) rightward shifts in the short-run aggregate supply curve. B) rightward shifts in the both the aggregate demand and long-run aggregate supply curves. C) movements upward along the aggregate demand curve. D) rightward shifts in the aggregate demand curve and leftward shifts in the short-run aggregate supply curve.
What does intra-industry trade create for the consumer?
a. greater variety of goods and lower costs b. greater variety of goods and higher costs c. lower variety of goods and lower costs d. lower variety of goods and higher costs
If cross elasticity between two goods is zero, then the goods are
a. perfect substitutes b. perfect complements c. good but not perfect substitutes d. not considered to be substitutes e. good but not perfect complements
When governments become more heavily involved in taxing one group in order to provide benefits to other groups, which of the following will be encouraged?
a. rapid economic growth b. rent-seeking activity c. an improvement in the efficiency of government bureaucracies d. competitive private markets