If a decrease in the price of gasoline increases the demand for large cars, then
A) gasoline and large cars are substitutes in consumption.
B) gasoline and large cars are complements in consumption.
C) gasoline is an inferior good.
D) large cars are an inferior good.
B
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The "greenhouse effect" is predicted to
a. lead to the next ice age. b. raise global temperature. c. pollute the oceans. d. break the edifice complex by the turn of the century.
Under the transferrable pollution rights system, unused permits ______.
a. must be destroyed b. can be sold c. become public property d. result in heavy fines
Answer the following questions true (T) or false (F)
1. An increase in imports increases aggregate demand. 2. A decrease in disposable income will shift the aggregate demand curve to the left. 3. An increase in the price level shifts the aggregate demand curve to the left.
Which choice below is an argument that more technological change occurs in more competitive market structures?
A. Oligopolistic firms earn the profits to pay for research; competitive firms do not. B. Most large, oligopolistic firms such as AT&T have done a great deal of research. C. The "high-tech revolution" grew out of many tiny start-up operations. D. Small firms are too "lean and mean" to support any research and development.