Suppose one observes that when the price of peanut butter increases, the demand for jelly increases. One should conclude that:
A. peanut butter and jelly are complements.
B. peanut butter and jelly are substitutes.
C. peanut butter and jelly are inferior goods.
D. peanut butter and jelly are normal goods.
Answer: B
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National defense made up the largest portion of federal expenditures in 2009.
Answer the following statement true (T) or false (F)
A country will likely experience an increase in poverty if
A) its population decreases over time. B) its real GDP per person growth rate increases over time. C) it does not receive foreign aid. D) its inflation rate decreases or slows over time. E) its real GDP growth rate decreases or slows over time.
A rule that specifies the highest price that a regulated firm is permitted to set is called
A) rate of return regulation. B) price cap regulation. C) maximum price regulation. D) average/marginal cost pricing.
The per-worker production function illustrates the fact that as the amount of capital per worker increases, output per worker: a. increases at an increasing rate
b. increases then decreases. c. decreases but at an increasing rate. d. decreases. e. increases but at a decreasing rate.