To reduce our dependence on foreign oil, policy makers must realize that the cross-price elasticity sign for gasoline and fossil fuel-burning cars is negative.
Answer the following statement true (T) or false (F)
True
If policy makers want to reduce our foreign energy dependence, they must realize that gasoline and fossil fuel-burning cars are complementary goods. The sign on the cross-price elasticity for complementary goods is negative.
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10% of the total food grains produced in a country during a year got damaged due to poor storage. Which of the following will happen in this case?
A) Imports will fall. B) Trade surplus will increase. C) GDP will remain unchanged. D) GDP will decrease.
Consider two individuals, Kevin and Harris, who discount delayed utilities with a weight of 1/2 and 3/4, respectively
a) Who between the two individuals gives more weight to things that happen in the future? b) If consuming ice cream gives both Kevin and Harris benefits worth 8 utils instantly and has delayed costs of 15 utils, then comment on whether both individuals will want to consume ice cream. c) If the nearby ice cream parlor is closed for a week, will Kevin and Harris prefer to eat ice cream after a week, given that they have to decide today?
A Basic principle of economics is:
A) knowing your customer means understanding their income. B) there are costs involved in any action or decision. C) demand equals supply. D) equilibrium is beneficial. E) size and market share are important goals for a business.
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. What price should the firm set?
A. $25 B. $30 C. $40 D. $45 E. $55