According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and
marijuana?
A) The two goods are substitutes in consumption.
B) There is no relationship between the two goods.
C) The two goods are complements in consumption.
D) They are both luxury goods.
Answer: C
You might also like to view...
How does a cap-and-trade system:
a. force polluters to internalize an externality? b. lower transactions costs? c. give incentive to polluters to find new ways to reduce pollution? d. make future pollution reductions easy to implement?
Two of the firms involved in the accounting scandals of the early 2000s were
A) WorldCom and Enron. B) Arthur Anderson and NBC. C) DuPont and Lehman Brothers. D) Western Digital and General Motors.
According to the neoclassical theory of distribution, the wages paid to workers depend on the
a. supply of labor. b. demand for labor. c. marginal productivity of labor. d. All of the above are correct.
Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its substitution effect on saving and its effect on the government budget b. its substitution effect on saving but not its effect on the government budget c. its effect on the government budget but not its substitution effect on saving d. neither its substitution effect on saving nor its effect on the government budget