When two goods are complements, a shock that lowers the price of one good causes the price of the other good to
A) remain unchanged.
B) decrease.
C) increase.
D) change in an unpredictable manner.
C
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Because Jess didn't have the time to understand the issue, she did not vote on the amendment about clean energy. Jess's behavior demonstrates the economic principle of ________
A) diminishing marginal utility B) voting preferences C) rational ignorance D) minimum differentiation
If you asked a classical economist which economic time frame she prioritized, how might she respond?
A) "Prices tend to be sticky when supply or demand changes." B) "Savings is a drain on aggregate demand." C) "The economy tends toward instability and cyclical unemployment." D) "The long run is key." E) "The short run is key."
New investors are not attracted to an industry and current ones are not exiting the industry if firms in the industry are
A. earning an accounting profit. B. earning an economic profit. C. breaking even. D. suffering an economic loss.
Figure 6-7
In Figure 6-7, which total expenditure curve belongs to a demand curve that is unit elastic throughout?
A. 1 B. 2 C. 3 D. 4