Two goods are substitutes if an increase in the price of one good leads to a decrease in demand for the other.
Answer the following statement true (T) or false (F)
False
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Households receive transfers from ________ and firms receive transfers from ________
A) government; government B) firms; households C) government; government and households D) firms and government; government E) government; no one
A good or service is said to be scarce when:
a. its price is too low. b. it is offered only to high income earners. c. no one wishes to purchase it. d. it cannot be transported easily. e. at a price of zero, there is not enough to satisfy everyone's desire for it.
Which of the following would be most likely to increase consumption spending?
a. A higher interest rate b. A drop in stock prices c. A reduction in consumer credit card debt d. The expectation of lower future prices e. An increase in the income tax rate
Most people who live in market-oriented economies would
a. oppose trying to block better products that lower the cost of services. b. support trying to block better products that lower the cost of services. c. oppose trying to block better products that lower the cost of labor. d. support trying to block better products that lower the cost of labor.