If goods A and B are complements, then
A) the cross elasticity of demand between A and B is negative.
B) the cross elasticity of demand between A and B is positive.
C) their income elasticities of demand are both greater than 1.
D) their income elasticities of demand are both less than 1.
A
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Which of the following is true about inflation? a. Inflation promotes social harmony by uniting people against the government
b. Inflation is more damaging if it is unanticipated. c. Accurate anticipation of inflation is possible for everyone who is well informed about economic events. d. Those who lend money at a rate above the rate of inflation suffer economic losses. e. If people accurately anticipate inflation, their actions will prevent it.
The determination of prices in the market for automobiles is primarily a concern of: a. positive economics
b. normative economics. c. microeconomics. d. macroeconomics.
When demand is relatively inelastic, a 5% increase in price will:
a. increase total revenue by more than 5%. b. increase total revenue by less than 5%. c. decrease total revenue by more than 5%. d. decrease total revenue by more than 5%.
Studies show that during the March Madness college basketball tournament, the productivity of the average company in the US falls considerably. This is an example of
a. the Condorcet Paradox. b. signaling. c. moral hazard. d. screening.