The demand for good X has been estimated to be ln Qxd = 100 ? 2.5 ln PX + 4 ln PY + ln M. The cross-price elasticity of demand between goods X and Y is:
A. 4.0.
B. ?2.5 percent.
C. 4.0 percent.
D. ?2.5.
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. Producer's surplus is equal to total revenue minus consumer's surplus. 2. The efficiency criterion is normative in nature. 3. According to the efficiency criterion, when a policy creates both winners and losers, it will be preferred to the status quo as long as the winners' gains outweigh the losers' losses. 4. A given level of output is efficient if no more social gain can be obtained from changing the output level. 5. A $5 per unit sales tax is bad for consumers because it implies that the total amount (price plus tax) that they must pay increases by $5.
When people decide whether or not to get a flu vaccination, they ignore the ________ and as a result ________
A) marginal private benefit; too few vaccinations are given B) external benefit; too few vaccinations are given C) private cost; too many vaccinations are given D) marginal external cost; vouchers must be provided E) social cost; too many vaccinations are given
Which of the following groups had the highest median income in the U.S. in 2008?
A. Hispanic B. White (non-Hispanic) C. Asian D. Black
In economics, marginal analysis _____
a. has no practical applications or real-world uses. b. eliminates incorrect decisions and bad choices. c. involves comparing the additional costs and additional benefits of an activity. d. involves examining only the total costs and total benefits of an activity. e. guarantees an incorrect decision.