If a price hike of 5 percent increases the quantity demanded of another good by 2 percent, the goods must be ________ and the cross elasticity of demand equals ________
A) substitutes; 0.40
B) substitutes; 2.5
C) complements; 0.40
D) complements; 2.5
A
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If the Fed raises the U.S. interest rate, the demand for dollars ________ and the exchange rate ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
Which of the following is a fixed cost of driving a car?
a. gasoline b. maintenance c. tires d. license plates e. motor oil
It may be that unions increase worker productivity by
a. minimizing conflicts, resolving differences, and reducing job turnover b. using seniority rules to keep the most experienced workers employed c. increasing job turnover so that the least experienced workers quit d. allowing workers to goof off, which improves morale e. increasing the number of workers required to perform each task
For a pollutant like lead, which causes health effects to local residents even at very low levels, which regulatory approach would be most effective for eliminating any health threats?
a. Emissions standards b. Tradable permits c. Pollution taxes d. Pollution subsidies e. Ecolabeling