If automobiles and gasoline are complements, then their cross-elasticity coefficient will be:
A. strictly greater than one.
B. positive.
C. equal to zero.
D. negative.
Answer: D
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By offering training to workers whose firms laid them off because of competition from foreign firms, the federal government is attempting to reduce
A) unnatural unemployment. B) frictional unemployment. C) structural unemployment. D) cyclical unemployment. E) seasonal unemployment.
It is appropriate to use the supply-and demand-model if, in a market
A) everyone is a price taker with full information about the price and quality of the good. B) firms sell identical products. C) costs of trading are low. D) All of the above.
Under what conditions is an economy's production possibilities frontier also its consumption possibilities frontier?
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry maximizes his economic surplus by attending:
A. NoName U because the annual cost is only $20,000. B. Elite U. C. NoName U because he has a full scholarship there. D. State College.