If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods.
A. normal
B. inferior
C. complementary
D. substitute
Answer: D
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What was the primary reason the Income Tax Amendment of 1913 was passed?
(a) To pay off the public debt accumulated during the Civil War (1861–65) (b) To pay off the public debt accumulated during World War II (1941–45) (c) To grant the federal government access to revenues beyond those from land sales, customs and excise taxes (d) To pay off the current account deficit
Firms can earn economic profits even in the long run if
a. they charge the highest price possible b. there is a cost-reducing technological change c. there are significant barriers to entry d. marginal revenue equals marginal cost e. price is less than average variable cost at all rates of output
Which of the following is not a benefit to lenders/investors of financial intermediation?
a. More diversification than the direct market. b. More convenient than the direct market. c. Higher yield than the direct market. d. All the above are benefits to lenders. e. Lower risks than the direct market.
Figure 10-7
Given the aggregate demand and aggregate supply curves for the economy depicted in , the economy's output and price level are
a.
output y1 and price level P1.
b.
output y2 and price level P2
c.
output y1 and price level P3.
d.
output y2 and price level P1.