Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter) along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the
A) equilibrium price of peanut butter definitely rises.
B) equilibrium quantity of peanut butter definitely increases.
C) equilibrium price of peanut butter might rise or fall.
D) equilibrium price of peanut butter definitely falls.
E) equilibrium quantity of peanut definitely decreases.
D
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The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n)
A) market advantage. B) absolute advantage. C) comparative advantage. D) specialization advantage.
The most efficient way to encourage the growth of an infant industry is through
A) a voluntary export restraint. B) a tariff. C) a subsidy. D) an import quota.
The decision to give the politically appointed members of the Federal Reserve Board an automatic majority weakened the power of the private sector in the determination of monetary policy
Indicate whether the statement is true or false
The law of diminishing marginal returns per worker states that beyond some point:
a. marginal satisfaction declines per unit. b. decreases in capital per worker add more to output per worker. c. marginal satisfaction increases per unit. d. increases in capital per worker add less to output per worker.