If the price of airline travel in Europe falls and the demand for train travel in Europe also falls, then the two goods are
A) complements.
B) normal goods.
C) substitutes.
D) inferior goods.
Answer: C
You might also like to view...
Using the data in the above table, which worker hired at Jefferson's Cleaners is the first to show diminishing marginal returns?
A) the second B) the third C) the fourth D) the fifth
From the economist's perspective, "market failures" basically arise when:
A. the market system is unable to adapt to or to accommodate change. B. the quantity demanded for a good or service is greater than the quantity supplied of the good or service. C. demand and supply do not accurately reflect all the benefits and all the costs of production. D. the quantity supplied of a good or service is greater than the quantity demanded for a good or service.
Reinsurance exists to permit
A. people to buy insurance against terrorist acts. B. insurance companies to absorb predictable losses. C. insurance companies to absorb large losses. D. people to buy insurance against accidents.
The Sherman Antitrust Act
A. called for the establishment of the Federal Trade Commission. B. made tying contracts illegal and banned price discrimination. C. limited mergers that would substantially limit competition. D. declared monopoly and trade restraints illegal.