We would expect the cross elasticity between tennis racquets and tennis balls to be:
a. negative.
b. positive.
c. zero.
d. one.
e. infinite.
a
You might also like to view...
Typically, as an economy begins to emerge from a recessionary phase of the business cycle
A) investment begins to fall. B) inflation begins to fall. C) unemployment falls immediately. D) unemployment continues to rise.
The reason that the claim that floating exchange rates result in greater economic autonomy for individual countries may not be entirely accurate is that
A) empirical research finds no supporting data. B) policy makers are influenced by the effect of domestic policies on the exchange rate. C) there is no generally satisfactory method for measuring economic autonomy. D) it is based on the assumption of a gold standard. E) countries that run large trade deficits must increase exports to balance trade.
By designating Federal Reserve currency as legal tender, the federal government
A) has ensured that Federal Reserve currency will serve as money. B) has guaranteed that Federal Reserve currency may be exchanged for an equivalent amount of gold or silver. C) has mandated that Federal Reserve currency be accepted for payment of debts. D) has mandated that Federal Reserve currency be accepted by citizens of foreign countries in exchange for their countries' currencies.
Double counting in the resource cost-income approach to GDP statistics is avoided by
a. correct accounting of the values of exports and imports b. choosing only one method to calculate GDP--either the income or the expenditures method c. counting only the value added at each stage of a good's production process d. counting the value of final and intermediate goods and services e. subtracting the total value of intermediate goods and services from the total value of final goods and services