The cross-price elasticity of demand between Coca-Cola and Pepsi-Cola is calculated by dividing
A) the percentage change in the price of Coca-Cola by the percentage change in the price of Pepsi-Cola.
B) the percentage change in quantity demanded of Coca-Cola by the percentage change in the quantity demanded of Pepsi-Cola.
C) the percentage change in the quantity demanded of Coca-Cola by the percentage change in the price of Pepsi-Cola.
D) the percentage change in the price of Pepsi-Cola by the percentage change in quantity demanded of Coca-Cola.
C
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The quantity of employment is determined in the ________ market and that quantity, along with the ________, determines potential GDP
A) labor market; tax rate B) loanable funds; production function C) goods and services; labor market D) labor market; tax wedge E) labor market; production function
Which of the following is a fixed percentage of the value of an imported product?
A) specific tariff B) ad valorem tariff C) nominal tariff D) effective protection tariff E) infant industry tariff
Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________
A) changes in aggregate demand B) changes in the money supply C) changes in the rate of inflation D) productivity shocks
Given the value of marginal product of labor, the higher the wage rate, the higher the number of workers employed
Indicate whether the statement is true or false