Cross-price elasticity of demand measures the response in the
A. price of a good to a change in the quantity of another good demanded.
B. quantity of one good demanded when the quantity demanded of another good changes.
C. quantity of one good demanded to a change in the price of another good.
D. income of consumers to the change in the price of goods.
Answer: C
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A decrease in interest rates caused by a change in the price level would cause a(n) ________.
A. increase (or shift right) in aggregate demand B. decrease in the quantity of real output demanded (or movement up along AD) C. increase in the quantity of real output demanded (or movement down along AD) D. decrease (or shift left) in aggregate demand
What is meant by the geography hypothesis? How does it differ from the culture hypothesis?
What will be an ideal response?
A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
The Black Death in fourteenth-century Europe resulted in
a. a lower marginal product of labor of surviving workers. b. a higher marginal product of land. c. economic hardship for surviving peasants. d. economic hardship for surviving landowners.