Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family
A) hamburgers and ketchup are complements.
B) hamburgers and ketchup and substitutes.
C) hamburgers and ketchup are normal goods.
D) hamburgers are normal goods and ketchup is an inferior good.
Answer: A
You might also like to view...
In the principal-agent problem, the agent is:
A. a person who entrusts someone with a task. B. a person who carries out a task on someone else's behalf. C. a person who is in charge of a top-secret mission. D. a person who has the same objectives as the principal.
In a competitive market, an efficient allocation of resources is characterized by:
a. a price greater than the marginal cost of production. b. the possibility of further mutually beneficial transactions. c. the largest possible sum of consumer and producer surplus. d. a value of consumer surplus equal to that of producer surplus.
When the economy is operating at an output beyond its full-employment potential, the
a. actual level of unemployment will exceed the natural rate of unemployment. b. actual level of unemployment will equal the natural rate of unemployment. c. strong demand for resources will place upward pressure on resource prices. d. aggregate demand will increase until full employment is restored.
Cyclical deficit (surplus)
What will be an ideal response?