Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?
A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall.
B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase.
C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged.
D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.
B
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The aggregate expenditure in an open economy is defined as:
A) E = C + I + G. B) E = C + I + G + X. C) E = C × I × G × X - M. D) E = C + I + G + X - M.
Stabilization policy may be necessary to modify or counteract volatile changes in aggregate demand
a. True b. False Indicate whether the statement is true or false
Innovation lagged in the centrally planned economies because:
A. there was too much domestic business competition.
B. there was too much competition from foreign firms.
C. enterprises resisted innovation in fear that their production targets would be raised.
D. exports had to equal imports for the plan to work.
Taxes levied on broad bases tend to distort choice ________ and impose ________ excess burden than taxes on more sharply defined bases.
A. less; larger B. more; larger C. more; smaller D. less; smaller