If price of product A increases by 10%, and the quantity demanded for product B drops by 50%, then these two products are
A) substitutes.
B) complements.
C) normal goods.
D) inferior goods.
B
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If capital per hour of labor increases, GDP per hour of labor
A) increases because the level of technology advances. B) increases for a given level of technology. C) changes only if technology also advances. D) decreases for a given level of technology. E) decreases because the level of technology decreases.
Refer to above figure. In the absence of a tariff and in the presence of trade, what is the country's consumer surplus?
What will be an ideal response?
Tariff accounts for 32% of the total government revenue in the U.K. and only 1.2% in India
a. True b. False Indicate whether the statement is true or false
The aggregate demand curve
a. represents the relationship between prices and quantities of all goods produced in an economy b. is derived from equilibrium conditions in the labor and money markets c. gives the equilibrium level of real GDP corresponding to a given price level d. is the sum of an economy's individual demand curves e. plots the interest rate as a function of output