The cross-price elasticity for a complement is negative.
a. true
b. false
Ans: a. true
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If a country's human capital improves, ________
A) the country will have more inequality for a given level of capital stock B) the country will have a lower GDP for a given level of capital stock C) the country will have more poverty for a given level of capital stock D) the country will have a greater GDP for a given level of capital stock Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different technologies. Technology in economy B is more advanced than the technology in economy A.
In the used car market without warranties, adverse selection results in
A) sellers of "lemons" claiming that their car is a lemon. B) only lemons being available for sale. C) the market price of used cars equal to that of good used cars. D) all of the above.
We assume that when a firm hires additional workers, the marginal physical product of labor will
A) increase because more workers can always get more work done. B) decrease because the new workers are likely to be less able than the previously hired ones. C) decrease because each worker now has less capital and other resources to work with. D) increase because large firms are more efficient.
To own a taxicab in New York City, you must own a medallion. New York City regulates the number of official cabs by limiting the number of medallions. Explain why the New York cab industry is not competitive by reviewing the four conditions necessary for competition. NYC violates which one?
What will be an ideal response?