Friday, February 5, 2010

True False question: A negative change in demand implies a move down the demand curve?

2. There is an inverse relationship between demand and price which is plotted on a demand curve. Im leaning towards true, however just not sure because it did not mention ';quantity demanded';.





3. Complementary goods are those that are bundled free with other goods for promotional purposes?





4. In producing more labour saving goods capital goods unemployment rises.





5. Growth in the economy is implied by producing more capital goods but fewer consumer goods.True False question: A negative change in demand implies a move down the demand curve?
These are my best guesses - I'm not 100% sure, but I've always done pretty well on my economics tests. Although a couple of these seem to be a little tricky.





1. False - I believe a negative change in demand is the demand curve moving down the SUPPLY curve.





2. True - I think you may be reading into it too much looking for it to say quantity demanded.





3. False - complementary goods are things people buy together - like hot dogs and hot dog buns.





4. Think its true, but really not sure on that one.





5. True - I can faintly remember discussing this in class and the instructor saying that when societies produce capital goods rather than consumer goods, it implies growth.

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