According to the circular-flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates
a. in the markets for factors of production exchanging labor for income.
b. in the markets for factors of production exchanging flowers for revenue.
c. in the markets for goods and services exchanging flowers for wages, rent, and profit.
d. in the markets for goods and services exchanging labor for income.
a
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Negative cross-price elasticity of demand indicates that
a. the product is an inferior good b. the product is a necessity c. the product is a luxury d. the two products are substitutes e. the two products are complements
If people decide to hold some of their cash and not deposit it, then the:
A. money multiplier overestimates how much money will be created in the economy. B. money multiplier underestimates how much money will be created in the economy. C. reserve ratio is not fully functioning, and should be raised. D. reserve ratio is not fully functioning, and should be lowered.
An advance in technology which increases labor productivity will shift the:
A. labor demand curve to the left. B. MRP curve to the left. C. MP curve downward. D. labor demand curve to the right.
The cross-price elasticity of demand between goods X and Y is ?3.5. If the price of X decreases by 7 percent, the quantity demanded of Y will:
A. increase by 2.45 percent. B. decrease by 2.45 percent. C. decrease by 24.5 percent. D. increase by 24.5 percent.