How can one tell from cross elasticity what kind of relationship exists between any two goods?
What will be an ideal response?
If the price of X increases and the quantity demanded of Y decreases, resulting in a negative cross elasticity, the two goods are complements. If the price of X increases and the quantity demanded of Y increases, resulting in a positive cross elasticity, the two goods are substitutes.
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Total reserve holdings over and above required reserves constitute the minimum amount of loans a depository institution can make
a. True b. False Indicate whether the statement is true or false
Diminishing marginal returns always sets in with the hiring of the first worker.
Answer the following statement true (T) or false (F)
Households are paid income for the resources they supply in an input market.
Answer the following statement true (T) or false (F)
Monopolists are like perfectly competitive firms in that ______.
a. both maximize profits at the output level where marginal revenue equals marginal cost b. both could be earning either profits or losses in the short run c. both are in industries with downward-sloping demand curves d. all of these are true of both of them e. both maximize profits at the output level where marginal revenue equals marginal cost and both could be earning either profits or losses in the short run are true of both of them, but not both are in industries with downward-sloping demand curves