If an increase in the price of good X leads to a decrease in the consumption of good Y, then goods X and Y are called
A. normal goods.
B. complements.
C. substitutes.
D. inferior goods.
Answer: B
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Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall. Holding everything else constant, how would this affect the market for wheat (a substitute for corn)?
A) The demand for wheat would decrease and the equilibrium price of wheat would decrease. B) The supply of wheat would increase and the equilibrium price of wheat would decrease. C) The demand for wheat would increase because consumers could afford to buy more wheat and corn. D) The demand for wheat would decrease and the equilibrium price of wheat would increase.
The burden of debt is borne by future generations.
A. True B. False C. Uncertain
A law requiring sellers to pay the government a tax per pack on cigarettes has the effect of:
a. shifting the supply curve to the right. b. shifting the demand curve to the right. c. shifting the supply curve to the left. d. shifting the demand curve to the left.
Productivity growth rates in the United States have remained fairly constant from 1948 to 2000
a. True b. False Indicate whether the statement is true or false