If goods X and Y are substitute goods, then an increase in the price of Y, other things being equal,
A) results in a decrease in the amounts of both X and Y consumed.
B) decreases the quantity demanded of Y, but has no effect on the amount of X consumed.
C) results in a decrease in the quantity of Y consumed, but increases the demand for X.
D) has no real effect on the quantity demanded of good Y, but increases the demand for X.
C
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Holding demand constant, a reduction in supply leads to
A) lower prices and higher quantity demanded. B) lower prices and lower quantity demanded. C) higher prices and higher quantity demanded. D) higher prices and lower quantity demanded.
Which of the following is a key characteristic of economic freedom?
a. subsidies and regulations that favor business b. central planning c. reliance on open markets d. import quotas that protect domestic businesses from rivals
The nominal wage is the wage rate adjusted for changes in the price level
Indicate whether the statement is true or false
U.S. government regulation of social and economic activity
A) only began after World War II. B) costs less now than it did in the 1980s. C) has increased steadily since 1970. D) is confined to antitrust law.