Oliver just brought home a new kitten. We could expect Oliver’s demand for:
A. cat toys, a complementary good, to increase.
B. cat toys, a complementary good, to decrease.
C. dog toys, a substitute good, to increase.
D. dog toys, a substitute good, to decrease.
A. cat toys, a complementary good, to increase.
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A subsidy payment, even if paid entirely to the seller, will impact the price, supply of, and quantity demanded of a good
a. True b. False Indicate whether the statement is true or false
What can you deduce about the type of good Patty’s Pizza is and about the relationship between Patty’s Pizza and Sue’s Subs?
Suppose that when the average college students income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80. Suppose that when the price of Patty's Pizza increases from $8 to $10 per pie, the quantity demanded of Sue's Subs increases from 80 to 100. Suppose also that when the average student's income increases to $12,000 per year, the annual quantity demanded of Patty's Pizza increases from 50 to 60 a) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are substitutes b) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are complements c) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are substitutes d) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are complements
An example of fiscal policy is
A. a reduction in investment spending by the private sector. B. a cost-of-living adjustment in Social Security payments to the elderly. C. an increase in government spending. D. an increase in autonomous spending by consumers.
Saying a firm will continue investing up to the point at which ________ is equivalent to saying that a firm will keep investing in new capital up to the point where the expected rate of return is equal to the interest rate.
A. the return on capital is equal to depreciation B. the marginal revenue product of capital is equal to its rental cost C. the interest rate is equal to the inflation rate D. the marginal product of capital is equal to the marginal product of labor