Suppose that X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X?
a. Equilibrium price declines, and equilibrium quantity rises.
b. Equilibrium price rises, and equilibrium quantity falls.
c. Equilibrium price and quantity both decline.
d. Equilibrium price and quantity both rise.
d
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Which of the following statements is true?
A) An overvalued domestic currency encourages exports. B) A country can keep its currency overvalued against the dollar as long as its dollar reserves last. C) A country can keep its currency overvalued against the dollar as long as it can print its own currency. D) An undervalued domestic currency encourages imports.
If labor is fixed at 5 units, how much does the second unit of capital add to total output? 
Amount of total output produced from various combinations of labor and capital.
A. 490 B. 390 C. 100 D. 50 E. none of the above
If OPEC is an effective cartel,
A. price changes are dictated by changes in demand. B. output changes are dictated by changes in demand. C. members agree on output quotas. D. oil prices will be lower than if the market functioned competitively.
Suppose the price change of a good causes no change in quantity demanded, we would say that the item is
A. perfectly elastic. B. perfectly inelastic. C. unitary elastic. D. infinitely elastic.