If an increase in the price of Good A causes a decrease in demand for Good B, Goods A and B are said to be complements
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
In economics, the word "aggregate" refers to
A) the government. B) how individual households differ from each other. C) the public sector itself. D) an economy as a whole.
Figure 9-4
?
In Figure 9-4, if the economy is in a recessionary gap, what must happen to reach potential GDP?
A. The expenditure level must fall and/or the price level must rise. B. The expenditure level must rise and/or the price level must fall. C. The expenditure level must rise and/or the price level must rise. D. The expenditure level must fall and/or the price level must fall.
Creditors supply loans to sole proprietors at a high rate of interest because of:
a. their low profit expectancy from this business. b. frequent experience of loan default. c. their inability to call in their loans or sell them to others. d. their general risk-averse nature.
When a resource is being depleted and becomes scarce, the market’s way of encouraging conservation is for the price of the resource to rise, without any government intervention.
Answer the following statement true (T) or false (F)