There are three goods you are interested in purchasing, X, Y and Z. You notice that the price of Z has fallen. Given that the cross price elasticity between Z and Y is ?1.5; the cross price elasticity between Y and X is 3.0, and the cross price elasticity between Z and X is 0.50 . It would make sense that:
a. Z and X are complements; Y and X are substitutes.
b. Y and X are substitutes; Y is complementary to Z.
c. X and Z are unrelated; Y is complementary to X.
d. X and Z are complements; Y and Z are substitutes.
b
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Human capital ________ as you work. As a result, the ________ of goods and services ________
A) does not change; quality; does not change. B) decreases; quantity; decreases. C) improves; quality; does not change. D) declines; quality; increases. E) increases; quantity; increases.
The idea that a $1 increase in infrastructure spending will generate more than $1 in economic growth is a representation of
A) the multiplier effect. B) an automatic stabilizer. C) an outside lag. D) an inside lag.
Most income tax revenues are collected by _____
a. the federal government b. state governments c. county governments d. city governments
The United States has the largest economy in the world because
a. it has the most land to work with. b. it has a large population. c. American workers are very productive. d. both b and c are correct.