What would you expect the cross price elasticity of iPods and online music downloads? Explain your answer
What will be an ideal response?
The cross price elasticity of iPods and music downloads should be negative because they are likely to be complements. Thus, an increase in the price of iPods will decrease the demand for music downloads.
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Use Figure 16.2 above to answer the following question. Assume that MPC represents the marginal private cost and MB is the marginal private benefit for a particular firm
Assume however, that the MDC represents the marginal damage cost of this firm's activity and the MSC is the marginal social cost. How much output would the firm produce if it had to internalize the negative externality.
The concept of mean reversion is defined by
a. the tendency of profits to revert to zero b. the tendency of costs to revert to zero c. the tendency of economic profits to revert to zero d. the tendency of profits to revert to negative
The distribution of world income is
a. equalizing rapidly. b. very unequal. c. very equal for countries in the Northern Hemisphere. d. very equal for countries in Europe.
If the amount of taxes > outlays
What will be an ideal response?