A. substitutes inferior
B. normal, complements
C. substitutes complements
D. normal, inferior
Related Mcqs:
- If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
A. falls; rise; falls; surplus
B. is static; low; rise; deficit;
C. falls; falls; falls; surplus
D. rise; falls; rises; deficit - If the cross-price elasticity of demand between two goods is negative, then the two goods are ?
A. normal goods
B. unrelated goods
C. Substitutes.
D. Complements - If the cross-price elasticity between two goods is negative the two goods are likely to be ?
A. substitutes
B. complements
C. necessities
D. luxuries - Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?
A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. tradable pollution permits, Pigouvian taxes, command-and-control policies
C. tradable pollution permits command-and-control policies, Pigovian taxes.
D. command-and-control policies, tradable pollution permits, Pigovian taxes.
E. They would all rank equally high because the same result can be obtained from any one of the policies - The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
A. reduce , reduce
B. increase, increase
C. increase, reduce
D. reduce, increase - Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
A. decreases, decreases
B. decreases, increases
C. increases, decreases
D. increases, increases - If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?
A. falls; falls; falls; surplus
B. is static; low; rises; deficit
C. falls; rises; falls; surplus
D. rises; falls; rises; deficit - The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it
A. increase; increase
B. increase; reduce
C. reduce; reduce
D. reduce; increase - Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?
A. restrict; promote
B. restrict; restrict
C. promote; promote
D. promote; restrict - The long-run Phillips curve is ____ at the ____?
A. horizontal, natural rate of inflation
B. horizontal natural rate of unemployment
C. vertical natural rate of inflation
D. vertical equilibrium rate of unemployment
