A positive cross-elasticity of demand for two products indicates that they are:
A. normal goods.
B. substitutes.
C. complements.
D. independent goods.
Answer: B
You might also like to view...
Sales taxes are
A) assessed on the prices paid on a large set of goods and services. B) levied on purchases of a particular good or service. C) based on each individual taxpayer's income level. D) collected only by the U.S. government.
Assume that U.S. producers can manufacture cookies at a lower opportunity cost than Mexican producers. If this is the case
A) it will not be possible for Mexico to have an comparative advantage in the production of any other products. B) Mexico could still have the comparative advantage in cookie production. C) it would still be possible for Mexico to have a comparative advantage in trade for some other products. D) Mexico would have the comparative advantage in all products compared to the United States.
According to international trade theory
A. every country has a comparative advantage in something. B. comparative advantage is based on absolute advantage. C. less developed countries cannot trade successfully with developed countries. D. trade is based on absolute advantage.
The U.S. government has accumulated a net national debt of almost 60% of GDP. Compared to other countries, this is:
a. smaller than that of many fiscally healthy countries b. larger than that of many fiscally healthy countries c. about the same as that of troubled debtor nations d. larger than that of troubled debtor nations