In the above figure, if the two goods A and B, are complements, which of the following is TRUE?
A) The shift from D0 to D1 for good B leads to a shift from S0 to S1 for good A.
B) The shift from S0 to S1 for good A leads to the shift from D0 to D1 for good B.
C) The law of demand is violated in both markets.
D) The cross elasticity of demand between them is positive.
B
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According to the article, the best description of Canada's position in the business cycle is
A) at a peak. B) at a trough. C) in an expansion. D) in a recession.
In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals
A) always tend to act in an altruistic manner. B) always consider the impact of their actions on the welfare of others. C) are motivated by self-interest. D) are never concerned with economic issues.
The shorter the time period that suppliers have to adjust to price changes, the
A. lower will be the price elasticity of supply. B. higher will be the price elasticity of supply. C. lower will be the price elasticity of demand. D. higher will be the price elasticity of demand.
GDP figures can be used to make international comparisons of living standards. What are three adjustments made by the International Monetary Fund (IMF) to each country’s GDP to allow for meaningful comparisons of living standards between countries?
Explain. What will be an ideal response?