Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy
A) pickles and ketchup are complements.
B) pickles and ketchup are normal goods.
C) pickles and ketchup and substitutes.
D) pickles are a normal good and ketchup is an inferior good.
A
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Joanne left her last job, in which she was earning $60,000, in order to form her own consulting business. Her revenues for the first year of consulting were $210,000. During that year, she hired two assistants for $25,000 each and spent $25,000 on office
equipment. In addition, she incurred $75,000 in miscellaneous expenses. Her economic profit that first year was A) $0. B) $50,000. C) $200,000. D) $75,000.
In the private sector where firms compete for profit, if a firm is inefficient, ________. In the public sector, if a government bureau is producing a necessary service and is doing so inefficiently, ________.
A. it does not need to worry about customers; it does not need to worry about customers B. the market will drive it out of business; it does not need to worry about customers C. it does not need to worry about customers; the market will drive it out of business D. the market will drive it out of business; the market will drive it out of business
GDP estimates account for which of the following items?
A. Do-it-yourself activities B. "Psychic income" people derive from their work C. Household spending for health and home insurance D. Improvements in product quality
Consumer equilibrium exists when the marginal utility per dollar of expenditure is the same for all goods and services
a. True b. False Indicate whether the statement is true or false