Assume that black beans and rice are staples in the diet of one particular family. How could you tell if these goods were complements, substitutes, or unrelated goods?
a. If the price of black beans rose and the consumption of rice remained the same, they would be substitutes.
b. If the price of black beans rose and the consumption of rice increased, they would be substitutes.
c. If the price of black beans rose and the consumption of rice decreased, they would be substitutes.
d. If the price of black beans rose and the consumption of both goods remained the same, they would be complements.
e. There is no way to determine whether these goods are complements, substitutes, or unrelated goods.
B
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Which of the following is true about a monopoly?
A) Its demand curve is generally less elastic than in more competitive markets. B) It will always earn economic profit. C) It will always produce the same as a perfectly competitive firm. D) It will always be subject to government regulation. E) None of the above is true.
The three primary systems for allocating resources are
a. tradition, command, and central planning b. tradition, central planning, and communal c. command, market, and socialism d. tradition, command, and market e. communal, command, and capitalism
According to the short-run Phillips curve, if the central bank increases the money supply, then
a. inflation and unemployment will both fall. b. inflation and unemployment will both rise. c. inflation will fall and unemployment will rise. d. inflation will rise and unemployment will fall.
A market demand schedule for hamburgers would NOT include which of the following?
A. People who eat a cheeseburger every day for lunch B. The concept of ceteris paribus C. Vegetarians, who buy no hamburgers D. The labor market