SOLVED

41) In the United States during the recession of 2007-2009, A) the total number of jobs declined, but jobs in health care increased. B) jobs in health care declined at a faster rate than overall jobs in the economy. C) demand for medical services declined, which resulted in a decline in available jobs in the medical field. D) despite the large decrease in demand for medical services, the number of jobs in health care remained virtually unchanged. 42) When deciding on which new products to develop, a firm must devote people, time, and money to designing a new product. Because any firm has only limited resources, it A) should wait until its competitors develop a similar product before deciding on devoting resources to its own product development. B) is not able to develop more than one new product at a time. C) must be certain that the product it chooses to develop will be successful or it will not be able to stay in business. D) faces a trade-off, because resources used to develop one product will not be available to develop another product. 43) The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in purchasing power as a result of the price change. 44) Chips and salsa are complements. If the price of salsa decreases, the demand for chips will increase. 45) A normal good is a good for which the demanded increases as income decreases, holding everything else constant. 46) The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded. 47) If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now. 48) What is the ceteris paribus condition? 49) What are the two effects that explain the Law of Demand? Briefly explain each effect. 50) Explain the difference between a normal good and an inferior good. 51) For each of the following pairs of products state which are complements, which are substitutes, and which are unrelated. a.Digital camera and memory stick b.7Up and Mountain Dew c.Swimsuits and flip-flops d.Tylenol and cat food e.Photocopier and paper a.Complements b.Substitutes c.Complements d.Unrelated e.Complements