The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A) price elasticity of demand.
B) price elasticity of supply.
C) cross price elasticity of demand.
D) income elasticity.
Answer: C
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All of the following are financial institutions that accept deposits and make loans to people and businesses EXCEPT
A) central banks. B) savings and loans. C) savings banks. D) commercial banks. E) credit unions.
The assumption that individuals act rationally implies that
a. people think only of themselves and disregard the well-being of others b. people undertake all those activities that yield benefits to themselves c. people only consider the costs of an activity to decide whether it is worthwhile d. the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that deed e. people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile
An expansionary monetary policy will
A. increase imports. B. decrease exports. C. increase a current account deficit. D. decrease a capital account surplus.
Refer to the above figure. Profits will be positive
A. when the price equals $1. B. at prices between $1 and $2. C. when the price is above $2. D. when the price equals $2.