Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to
A. Increase and the equilibrium quantity of the other good to decrease.
B. Decrease and the equilibrium quantity of the other good to decrease.
C. Decrease and the equilibrium quantity of the other good to increase.
D. Increase and the equilibrium quantity of the other good to increase.
Answer: B
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Suppose people decide to buy fewer GE stoves. If General Electric reduces the number of its employees to reduce its costs but no other stove company does so, which type of unemployment results?
A) cyclical B) marginal C) structural D) frictional E) discouraged
The quantity of labor supplied is determined by the:
A. number of firms. B. opportunity cost of providing labor. C. marginal product of labor. D. technology.
A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside) the production possibilities curve.
A good time for an American to hold German stocks, ceteris paribus, is when the
A. The return in the German stock market has no relationship to the value of the dollar compared to the euro. B. U.S. dollar depreciates in value compared to the euro. C. Euro is stable compared to the U.S. dollar. D. U.S. dollar appreciates in value compared to the euro.