Two goods that are used in place of each other. when price of a subsitute good rises, the quantity demanded falls and the demand for the related good goes up
What will be an ideal response?
substitutes
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A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price
Indicate whether the statement is true or false
A perfectly inelastic supply curve is vertical
a. True b. False Indicate whether the statement is true or false
If real GDP is 5,100 and nominal GDP is 4,900, then the GDP deflator is
a. 104.1 so prices are higher than in the base year. b. 104.1 so prices are lower than in the base year. c. 96.1 so prices are higher than in the base year. d. 96.1 so prices are lower than in the base year.
The "Asian miracle" refers to the:
A. fact that countries like Japan and South Korea have had consistent growth despite their failing industrial policies. B. high growth in countries like Japan and South Korea despite the absence of a democratic government. C. success countries like Japan, South Korea, and Taiwan have had with import substitution policy. D. success countries like Japan, South Korea, and Taiwan have had with export-led growth policy.