Which of the following goods are likely to have a positive cross-price elasticity?
A. Butter and margarine
B. Pepsi and pizza
C. Peanut butter and jelly
D. Tires and automobiles
Answer: A
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A monopsony has
a. one seller. b. a single buyer. c. many sellers. d. many buyers.
The existence of differences between the average earnings of men and women: a. proves the existence of discrimination
b. may be partially due to factors other than wage discrimination. c. proves that men on average invest more in human capital than do women. d. indicates that men are on average smarter than women are.
Command-and-control regulation tends to: a. increase the costs of production to reflect the social costs
b. increase the deadweight loss caused by negative externalities. c. decrease the cost of production of firms. d. increase subsidies in order to increase the private benefit of consumption.
The textbook suggests that rent controls
A. actually contribute to the housing shortage in the area where they are applied. B. are used in a government kickback scheme. C. actually contribute to the housing boom in an area where they are applied. D. have no effect on the local housing market.