People demand more of product X when the price of product Y decreases. This means X and Y are:
a. Substitutes
b. Complements
c. Both inexpensive
d. Not related
Answer: b. Complements
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When a monopoly is regulated it is required to sell lower output at a lower price
a. True b. False Indicate whether the statement is true or false
According to the doctrine of purchasing-power parity, which of the following should depreciate if over the next year the inflation rate is higher in the U.S. than in the Euro area?
a. both the U.S. real exchange rate and the U.S. nominal exchange rate b. the U.S. real exchange rate, but not the U.S. nominal exchange rate c. the U.S. nominal exchange rate, but not the U.S. real exchange rate d. neither the U.S. nominal exchange rate nor the U.S. real exchange rate
In a country with 200 million people aged 16 years and older, 120 million are in the labor force, and 114 million are employed, what is the unemployment rate?
A. 6 percent B. 5 percent C. 7 percent D. 4 percent
For a monopolistic competitor:
A. P = MC in long-run equilibrium. B. P = MR in long-run equilibrium. C. P > ATC in long-run equilibrium. D. P = ATC in long-run equilibrium.