If the cross elasticity of demand between goods A and B is negative
A) the demands for A and B are both price elastic.
B) the demands for A and B are both price inelastic.
C) A and B are complements.
D) A and B are substitutes.
C
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Some economists claim that the Chilean experience during the 1990s was much more successful than its Latin American neighbors. Evaluate the Chilean policies during that decade
What will be an ideal response?
The marginal revenue product (MRP) is the:
a. value of the additional output that an extra unit of a resource can produce. b. cost of hiring an additional unit of a resource. c. extra cost of producing an additional unit of output. d. increase in total output when an additional unit of an input is hired. e. change in total revenue when an additional unit of a good is sold.
Compromise between the desire to facilitate international trade and the need to give domestic governments latitude to govern their economies is called
a. economic structuralism. b. embedded liberalism. c. reciprocity. d. voluntary export restraint.
Suppose the economy is initially operating at full employment. A fiscal policy action that results in an increase in the size of the budget deficit will cause which of the following in the long run?
A. a reduction in the price level. B. change the composition of real GDP. C. an increase in real GDP. D. have no effect on both the level and composition of real GDP.