Ashley decreases her consumption of Good A after the price of Good B decreased. For Ashley
A) Good A and Good B are substitutes.
B) Good A and Good B are complements.
C) Good A is an inferior good.
D) Good B is an inferior good.
Answer: A
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In-kind transfers can be justified over cash transfers on the grounds that _____
a. they give the recipients higher utility b. they have lower administrative costs c. they are more equitable than in-kind transfers d. taxpayers prefer them
The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift
a. real GDP b. government tax revenue c. the money supply d. real interest rate e. the consumer price index
Which if the following is a normative statement?
a. The extent of income inequality in the United States is unjust. b. An increase in the demand for gasoline will lead to an increase in its price. c. The American Recovery and Reinvestment Act has created hundreds of thousands of jobs. d. The current unemployment rate is 8.5% e. Inflation harms individuals living on fixed incomes.
There are one-half million grain farmers in the country producing corn. The best model to analyze this market is
A. oligopoly. B. perfect competition. C. monopolistic competition. D. monopoly.