If the cross-price elasticity between ketchup and hamburgers is ?1.2, a 4 percent increase in the price of ketchup will lead to a 4.8 percent:
A. drop in quantity demanded of hamburgers.
B. increase in quantity demanded of ketchup.
C. drop in quantity demanded of ketchup.
D. increase in quantity demanded of hamburgers.
Answer: A
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The current account surplus
A) is a decreasing function of disposable income and an increasing function of the real exchange rate. B) is an increasing function of disposable income and an increasing function of the real exchange rate. C) is an increasing function of disposable income and a decreasing function of the real exchange rate. D) is a decreasing function of disposable income and a decreasing function of the real exchange rate. E) is an increasing function of disposable income and a decreasing function of aggregate demand.
The velocity of money ________
A) represents the average number of times a dollar turns over through the year B) provides the link between the money supply and nominal income C) times the money supply should equal total income, according to the equation of exchange D) all of the above E) none of the above
The Federal Trade Commission is charged with
a. supervising cartels in the United States b. aiding small business in contract negotiations with foreign companies c. investigating unfair and deceptive trade practices d. approving contracts between businesses and government e. bringing criminal complaints
Ronald Coase argued that property rights should always be assigned to the party that is harmed by the negative externality.
Answer the following statement true (T) or false (F)