If the quantity of glazed donuts demanded increases by 6% when the price of cinnamon rolls increases by 9%, the cross-price elasticity of demand between glazed donuts and cinnamon rolls is
A. -1.5.
B. -0.33.
C. 0.67.
D. 1.5.
Answer: C
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If velocity is equal to 4, this means that
A) the rate of growth of the money supply is 4. B) an increase in the money supply will lead to an increase in aggregate supply of 4. C) each dollar of the money supply is spent on the average 4 times per year. D) for every 4 dollars of the money supply, nominal GDP will increase by 4.
When a firm’s earnings rise, its stock prices will tend to fall.
Answer the following statement true (T) or false (F)
One reason a computer manufacturer may make its own microchips rather than buy them is that
a. it can maintain control over the quality during production b. the total cost of components is the same as the price of chips purchased from a chip manufacturer c. firms do not make high-quality microchips d. managers at the computer firm place a high value on their time e. firms do not produce goods for the market that can be made in-house
What do clean air in New York City and elephants in Africa have in common?
a. They are both common resources. b. They are both public goods. c. They are both club goods. d. Both are excludable.