Other things remaining the same, when a fall in the price of one good is followed by an increase in the demand for another good, both goods are said to be:
a. inferior goods.
b. substitute goods.
c. Giffen goods.
d. public goods.
e. complementary goods.
e
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Economies of scale may be a barrier to entry in a situation in which
A) only small-scale production can lower the per-unit cost of production. B) only small-scale production can meet the constantly changing market demand. C) only large-scale production can lower the per-unit cost of production. D) large-scale production is inefficient.
Countries with more economic freedom have levels of economic growth that
a. are generally higher than those of nations with less economic freedom. b. are similar to those of nations with less economic freedom since the level of investment, not economic freedom, determines the growth rate. c. cannot continue at high levels because too little government planning is being done. d. are generally lower than the growth rates of countries with less economic freedom.