Considering the concept of cross-price elasticity, if two goods are substitutes:
A. an increase in the price of one causes an increase in the demand for the other.
B. an increase in the price of one causes a decrease in the demand for the other.
C. the cross-price elasticity is negative.
D. a decrease in the price of one causes an increase in the demand of the other.
Answer: A
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Suppose your college sharply raises tuition rates next year. Other things constant, what is the least likely to occur?
A) The overall demand for courses at your college will fall. B) Your college bookstore will sell fewer textbooks. C) It will be easier to find parking at your college. D) Fewer students will use your college library.
List the three main sources of economic development
What will be an ideal response?
The flow of private foreign investment and grants and loans is included in a country's
(a) current account. (b) capital account. (c) cash account. (d) none of the above.
The percentage of U.S. families below the poverty line is approximately
a. 5 percent b. 10 percent c. 25 percent d. 45 percent e. 65 percent