Pete feeds his dog 100 percent more Pup-Peronis when Zuke's treats increase in price by 50 percent. For Pete, Pup-Peronis and Zuke's are ________ and the cross-price elasticity of demand is ________
A) complements; -1/2
B) substitutes; 2
C) substitutes; -2
D) complements; 2
E) substitutes; 1/2
B
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The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the deadweight loss?
A) area A B) area B C) area C D) area D E) area E
In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year, a 4 percent average rate of growth in the money supply would result in: a. a constant price level
b. a slowly increasing price level. c. a rapidly increasing price level. d. constant real GDP. e. constant nominal GDP.
The political popularity of a tariff on imported goods that compete with products of a well-established domestic industry is
a. surprising since one would expect the political power of consumers to override the interests of even a well-established domestic industry. b. surprising since one would expect the economic harm resulting from tariffs to be well understood by voters. c. not surprising since such a tariff would generally benefit an easily recognized interest group at the expense of uninformed, uninterested consumers. d. not surprising since the tariff enables domestic producers and consumers to gain at the expense of foreigners.
Southwest employees, among the most productive in the airline industry at seat capacity per employee, have been complaining that the company has pushed too far and has upset the culture by proposing more _______________ of jobs and more ____________ employees.
Fill in the blank(s) with the appropriate word(s).