Which pair of goods is likely to have the largest positive cross-price elasticity?
A. Peanut butter and jelly
B. Butter and margarine
C. Ramen noodles and a Rolex watch
D. Cross-price elasticity is always negative, and simply reported in absolute value.
B. Butter and margarine
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The economic way of thinking should be thought of as
A) a hypothesis. B) a parable. C) a set of conclusions. D) an approach. E) a statistical procedure.
U.S. national debt _______ when the federal government's _______
A. increases; outlays exceed tax revenue B. decreases; outlays exceed tax revenue C. increases; tax revenue rises faster than outlays D. decreases; tax revenue rises faster than outlays
Some colleges charge all students the same fee for a weekly dining services meal plan. Suppose that students differ by how much food they consume each week. For example, members of the women's swimming team consume, on average, twice as much food as the average female college student, and the average male college student consumes 20 percent more food than the average female college student. The
dining services fee is most like a(n) a. excise tax that conforms to the benefits principle. b. excise tax that violates the benefits principle. c. lump-sum tax that conforms to the benefits principle. d. lump-sum tax that violates the benefits principle.
The existence of a monopoly:
A. benefits the consumer. B. creates more consumer surplus. C. benefits the monopolist. D. creates a gain of total surplus.