If the cross-elasticity of demand for two goods is positive, this means that the goods are:
a. normal goods.
b. inferior goods.
c. substitutes.
d. complements.
c
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Which of the following is an example of an organization using marginal analysis?
A. A hotel manager calculating the average cost per guest for the past year. B. A farmer hoping for rain. C. A government official considering what effect an increase in military goods production will have on the production of consumer goods. D. A business calculating economic profits.
Max is shopping for a new winter jacket. The salesperson explains that two coats have identical features-the Columbia jacket that costs $120, and the Burton jacket that costs $300. Max buys the Burton jacket. Burton jackets may be a good example of:
A. an inferior good. B. a Giffen good. C. a Veblen good. D. a normal good.
We can roughly estimate how long it will take a country to double its real GDP per capita using the:
A. rule of 60. B. rule of 70. C. GDP deflator. D. growth estimator.
The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.