What does the sign (positive/negative) of the cross elasticity of demand tell us about the relationship between two goods?
What will be an ideal response?
The sign of the cross elasticity of demand reveals whether two goods are substitutes or compliments: The cross elasticity of demand is positive for substitutes and negative for complements.
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All of the following are examples of institutions that promote real economic growth EXCEPT
A) complex rules associated with business licensing used to promote careful business growth. B) patent laws that protect innovation. C) an efficient judicial system used to enforce contracts. D) strong law enforcement used to protect business interests.
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
Considering the information in the table shown, the bundle of goods that will derive the highest total utility for Jack is:
A. E.
B. B.
C. C.
D. D.
Social Security, officially known as Old Age and Survivors Insurance (OASI),
a. collects funds from current workers and invests them in order to provide these workers with a stream of income during the retirement phase of life. b. is based on the same principles as private insurance programs. c. is an intergenerational income transfer program. d. is a voluntary savings program run by the government.
The primary method for controlling the money supply in the United States is to limit the:
A. Amount of currency that is printed.
B. Amount of money that is spent by changing income transfers.
C. Amount of money that is spent by changing tax policy.
D. Volume of loans the banking system can make.