The cross price elasticity for coffee for a change in the price of tea is likely to be
A. negative but less negative than -1.
B. zero.
C. positive.
D. negative and more negative than -1.
Answer: C
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The fraction of a change in disposable income that is consumed is called _____
a. autonomous consumption b. induced consumption c. the multiplier d. the marginal propensity to consume e. the marginal propensity to save
Which of the following would allow the production possibilities curve for an economy to shift outward?
What will be an ideal response?
To produce 150 units of output, a firm must use 3 employees per day. To produce 300 units of output, the firm must use 8 employees per day. Apparently, the firm is:
A. not using any fixed factors of production. B. experiencing negative returns. C. experiencing diminishing returns. D. producing in the long run.
Refer to the graphs shown. The market is computers. Which graph best represents the impact of cheaper memory chips on the computer market?
A. Graph a B. Graph b C. Graph c D. Graph d