The Number of Satellite Dishes Increased by 50 Percent When

question 52

Multiple Choice

The number of satellite dishes increased by 50 percent when the average monthly price of cable TV increased by 10 percent. Assuming that other factors are held constant, satellite dishes and cable TV are classified as:

• A) complements.
• B) unrelated goods.
• C) substitutes.
• D) social goods.

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Definitions:

Economic Activities

Economic activities refer to actions that involve the production, distribution, and consumption of goods and services.

Subsidies

Financial support given by the government to businesses, organizations, or individuals, aimed at promoting economic and social policy objectives.

Stagnant Economy

A situation where an economy experiences minimal to no growth, often characterized by high unemployment and low consumer spending.

Interest Rates

The percentage at which interest is paid by borrowers for the use of money that they borrow from lenders.