If the cross elasticity of demand for DVD players and DVDs equals -2, then the products are
A) unrelated.
B) complements.
C) inferior goods.
D) substitutes.
E) normal goods.
B
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A price floor is the minimum price that consumers have to pay for a particular product
a. True b. False Indicate whether the statement is true or false
If the Fed decreases the discount? rate, relative to the federal funds? rate, then this
a. would cause the money supply to decrease. b. would cause the required reserve ratio to increase. c. would decrease the cost of funds for institutions borrowing from the Fed. d. would increase the cost of funds for institutions borrowing from the Fed.
The Federal Deposit Insurance Corporation insures
A. the federal funds market. B. banks against lawsuits. C. the deposits held in the Fed. D. the deposits held in member banks.
The law of diminishing marginal returns states
A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline. B) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline. C) that in the presence of a fixed factor, at some point average product of labor starts to fall as more and more variable inputs are added. D) average total costs of production initially fall and after some point starts to rise at a decreasing rate as output increases.