Any two goods are said to be _____ if they are consumed jointly in a specific proportion
a. perfect complements
b. merit goods
c. perfect substitutes
d. public goods
a
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A). If there is a surplus of motorcycles how will the equilibrium point change?
A) The equilibrium point will move from A to E. B) The equilibrium point will move from A to B. C) There will be no change in the equilibrium point. D) The equilibrium point will move from A to C.
Because most asset yields are affected in a systematic way by economic conditions, most securities in portfolios
A) have a covariance greater than zero. B) have negative yields. C) have covariance greater than one. D) increase in risk as new assets are added.
Entrepreneurship functions better when
A) the government performs the entrepreneurial function. B) there is a well-defined property rights system. C) saving is relatively low. D) most of the population has low levels of education.
Inflation is measured by examining the percent increase in the ________ from one year to the next.
A. CPI B. price of gas C. GDP growth D. nominal GDP