If two goods are complements, their cross elasticity of demand will normally be
A. zero.
B. a negative number.
C. a positive number.
D. infinity.
Answer: B
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The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, how much did households spend on nondurables and services?
A. 300 B. 700 C. 1,300 D. 1,000
If demand is unit elastic, then a 10 percent increase in price will lead to a 10 percent drop in quantity demanded.
Answer the following statement true (T) or false (F)
The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the Fed, is __________.
A. Assets B. Assets + a bank's liabilities C. Capital D. Required reserves
How did the pill make it easier for women to participate in the paid labor force?
A. By changing cultural attitudes toward women B. By reducing the rate of marriage and forcing women to work C. By giving women more control over when children were born D. By allowing women a means to have fewer children