Goods that are similar but are not perfect substitutes are called ________ goods.
A) differentiated
B) homogeneous
C) normal
D) inferior
Question 2
Is the cost of an all-volunteer army in the United States higher or lower than the cost of a conscripted (drafted) army?
A) Higher, unless the citizens are exceptionally patriotic
B) Lower, unless the army is inefficiently managed
C) Higher to taxpayers but lower to military personnel
D) The same because the wage will move to the market-clearing level
E) We cannot say without knowing the supply of and demand for military personnel.
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