If the price of one good increases, and as a result the demand for another good increases, the goods are
A. normal goods.
B. substitutes.
C. complements.
D. inferior goods.
Answer: B
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If the hot dog vendors at Yankee Stadium are earning a producer surplus on each hot dog they sell, then baseball fans cannot be gaining any consumer surplus on the hot dogs they buy
Indicate whether the statement is true or false
Fiscal policy involves the manipulation of ________
A) U.S. interest rates B) wages and prices C) federal government spending and tax revenues D) the supply of money
Labor market regulations in European Union countries
a. do not contain limitations on plant closing but do have provisions for mandatory severance pay that may discourage firms from expanding employment. b. include limitations on plant closing but have no provisions for mandatory severance pay that may discourage firms from expanding employment. c. neither entail limitations on plant closing nor provisions for mandatory severance pay that may discourage firms from expanding employment. d. include limitations on plant closing and provisions for mandatory severance pay that may discourage firms from expanding employment.
In deciding whether to operate in the short run, the firm must be concerned with the relationship between price of the output and
A) total cost. B) average variable cost. C) total fixed cost. D) the number of buyers.