Stan the news man on Channel 6 reports that the automobile prices were unchanged over the last year, yet automobile sales increased by 5 percent. In the same year, incomes rose by 2.5 percent. Based on this information, you could reasonably conclude that automobiles are
a. substitute goods
b. complementary goods
c. normal goods
d. priced below their equilibrium level
e. priced above their equilibrium level
c automobiles are normal goods
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To describe recessions as a "cluster of errors" in the economy means
A) markets never clear, even in the best of times. B) something has caused people to systematically misread the signals provided by the market process. C) the laws of supply and demand have failed to work. D) monopolies force people out of work.
A ________ monopoly is a market structure in which a monopoly producer sells to a monopoly distributor.
A) successive B) double C) dual D) two-stage
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency hires without verifying typing skills c. a manufacturer requires suppliers to be ISO 900 . certified d. Smokers get the worse life insurance rates as non-smokers
Unemployment is not caused by
A. drops in actual GDP. B. persons looking for more suitable jobs. C. inflation. D. technological disruption.