When a rise in the price of one item results in a decrease in the demand for another good, then the two goods are
A) substitute goods.
B) complementary goods.
C) inferior goods.
D) satisfying the law of supply.
Answer: B
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An accountant shows an invoice for a resource to the manager of the firm. They are discussing
A) explicit costs. B) implicit costs. C) economic profits. D) either explicit costs or implicit costs, but we can't tell without more information.
If the base year is 2010, the nominal GDP for 2015 is $12,800.5 billion, and the GDP deflater for 2015 is 102.3, what is the real GDP for 2015 compared to 2010?
a. $126,982 million b. $12,512.7 billion c. $13,094.4 billion d. $1,269,820 trillion
What is the most common reason people demand money?
A. Each bill and coin is a reflection of important people and events in a nation's history. B. Since very few of us engage in a flow of transactions, money is our financial safety net. C. People desire to use money as a medium of exchange when they buy goods and services. D. They demand money to ensure that the nation's government will not spend too much.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.