If two goods are substitutes, a(n)
a. decrease in the price of one will cause an increase in the demand for the other
b. decrease in the price of one will cause a decrease in the demand for the other
c. increase in the price of one will cause an increase in the supply of the other
d. increase in the price of one will cause a decrease in the supply of the other
e. increase in the price of one will cause a decrease in the demand for the other
B
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Potential output in an economy is dependent upon which of the following factors?
a. the given supply of resources b. rate of unemployment c. nominal wages d. potential output is not dependent on any of the previous factors
The welfare loss associated with the outcome in a competitive oligopoly is:
A. smaller than that of a monopoly. B. the same as that of colluding oligopolists. C. bigger than that of a monopoly. D. the same as that of a monopoly.
Labor income includes:
A. wages, salaries, and earnings of the self-employed. B. interest, dividends, and rent. C. profits, royalties, and rent. D. payments to owners of factories, machines, and buildings.
In Zimbabwe, inflation rose from an annual rate of 32 percent in 1998 to 100,000 percent in early 2009. Considering only the effects of this unexpected inflation, which of the following is most harmed by the inflation?
A. Businesses with large inventories B. Businesses with wages determined by long-term contracts C. Businesses with large debts D. Businesses who had contracted to sell their services to others at fixed prices