_______ is the percentage change in the quantity of good A that is demanded as a result of a percentage change in the price of good B.
a. Elasticity of savings
b. Cross-price elasticity of demand
c. Income elasticity of demand
d. Wage elasticity of labor supply
b. Cross-price elasticity of demand
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Which of the following statements is CORRECT?
I. The exchange rate is a price. II. The exchange rate is different from other prices because it is NOT determined by supply and demand. A) only I B) only II C) I and II D) neither I nor II
The figure above shows Ilene's budget line. If her dog, Muffin, runs away and she adopts another cat, named Sphynx, the budget line shown in the figure will
A) become flatter. B) become steeper. C) shift outward (because cats eat less). D) not move.
Other things being equal, you can make $20,000 a year teaching, $25,000 a year typing, $30,000 a year driving a cab, and $40,000 a year as a chef. You have a comparative advantage in
A) teaching. B) driving a cab. C) being a chef. D) one of them but we need more information to know which.
In the short run, an expansionary monetary policy by the Fed would:
a. reduce unemployment at the cost of higher inflation. b. reduce inflation at the cost of a rise in the natural rate of unemployment. c. reduce inflation and leave the natural unemployment rate unchanged. d. reduce both inflation and unemployment. e. increase both inflation and unemployment.