Two goods are considered substitutes when the cross elasticity of demand is ___ and complements when the cross elasticity of demand is ___
a. Greater than zero, less than zero.
b. Less than zero, greater than zero.
c. Greater than one, less than one.
d. Less than one, greater than one.
a
You might also like to view...
Which of the following is most likely an example of the division of labor?
a. It is easier to be a wheat farmer in North Dakota than in Florida. b. If you live in or near a big city, it is easier to attract enough customers to operate a successful dry cleaning business or movie theater than if you live in a sparsely populated rural area. c. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. d. Only those with medical degrees qualify to become doctors.
Most economists believe that
a. a monetary policy that achieves price stability will reduce uncertainty and provide the framework for strong economic growth. b. demand stimulus policies will reduce the long-term average rate of unemployment. c. expansionary monetary policy, if persistently followed, will reduce nominal interest rates. d. inflation is primarily the result of large budget deficits and other elements of expansionary fiscal policy.
One reason there is political opposition to international trade is that:
A. the potential gains from specialization and trade are small. B. the differences in opportunity costs between countries are small. C. not everyone benefits from trade. D. trade does not increase the total value of goods and services produced by a nation.
If Max's output per hour were 50 in 1994 and 60 in 1995, how much would his marginal productivity be in 1995?
A. 10 B. 50 C. 55 D. 60