If the cross-price elasticity of demand for two goods is -4.5, then
a. the two goods are substitutes.
b. the two goods are complements.
c. one of the goods is normal while the other good is inferior.
d. one of the goods is a luxury while the other good is a necessity.
b
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When analyzing how money affects income, we are analyzing the way in which a
A. stock affects another stock. B. stock affects a flow. C. flow affects another flow. D. flow affects a stock.
In the regression model Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui, where X is a continuous variable and D is a binary variable, to test that the two regressions are identical, you must use the
A) t-statistic separately for ?2 = 0, ?2 = 0. B) F-statistic for the joint hypothesis that ?0 = 0, ?1 = 0. C) t-statistic separately for ?3 = 0. D) F-statistic for the joint hypothesis that ?2 = 0, ?3= 0.
Which of the following types of mergers are of greater concern as being anticompetitive among antitrust regulators?
a. Horizontal mergers b. Vertical mergers c. Conglomerate mergers d. Horizontal, vertical and conglomerate mergers are of equal concern as being anticompetitive
Despite the monies spent by the federal and state governments, many observers believe which of the following?
a. public infrastructure such as bridges and roads is only adequate b. our educational system is lacking c. not enough monies are spent on homeland defense d. all of these are correct