If the quantity demanded of product S increases as the price of product T decreases, then S and T are complements
a. True
b. False
Indicate whether the statement is true or false
True
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Assume that due to unfavorable conditions in a prime honey-producing area, the price of honey increases by 50 percent. The quantity consumed of herbal tea declines immediately by 25 percent. Everything else held constant, the:
a. cross-price elasticity of demand for herbal tea and honey is negative, and therefore the two goods are substitutes. b. cross-price elasticity of demand for herbal tea and honey is negative, and therefore the two goods are complements. c. cross-price elasticity of demand for herbal tea and honey is positive, and therefore the two goods are substitutes. d. cross-price elasticity of demand for herbal tea and honey is positive, and therefore the two goods are complements. e. cross-price elasticity of demand cannot be determined from the information provided.
Labor productivity rises as the amount of capital available to workers increases
a. True b. False Indicate whether the statement is true or false
According to Keynes,
A. supply creates its own demand. B. the problem during recessions was inadequate aggregate supply. C. investment spending was necessary to get us out of a depression. D. budget deficits were good during recessions.
The argument that tariffs should be imposed when a foreign government provides financial assistance to its producers is
A. a national defense concern. B. dumping. C. the infant industry argument. D. to counter foreign subsidies.