When the price of margarine is $2 per unit, 10 units of butter are demanded. When the price of margarine increases to $6 per unit, 30 units of butter are demanded. What is the cross-price elasticity between the two goods?
A) -1
B) 1
C) 2
D) 5
B
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An important category of bias in human decision making is:
A. temptation. B. revealed preference. C. ease of the decision-making process. D. All of these are important sources of bias in decision making.
What is suggested by a Lorenz curve diagram with a line very close to the 45-degree line?
a. A mostly equal income distribution b. A highly unequal income distribution c. Rising wage rates across all income levels d. Declining wage rates for the middle class
Although it may be difficult to draw causal relationships, still statistical evidence shows that, over time,
a. there is no relationship between levels of saving and economic growth b. there is an inverse relationship between levels of saving and economic growth c. higher levels of saving are associated with lower levels of economic growth d. lower levels of saving are associated with lower levels of economic growth e. lower levels of saving are associated with higher levels of economic growth
The successful introduction and adoption of a new product or process is known as
a. invention. b. innovation. c. origination. d. adaptation.