If the cross-price elasticity is negative, we can conclude that the two goods are ______ because the price of one good and the demand for the other move in opposite direction.
a. surrogates
b. substitutes
c. complements
d. contradictory
c. complements
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If the demand curve is a downward sloping straight line, the price elasticity of demand always
A) increases as the demand curve shifts rightward. B) increases as the demand curve shifts leftward. C) increases with movements upward along the demand curve. D) decreases with movements upward along the demand curve.
Under a fixed exchange rate system, if an appreciation in the value of a country's currency develops, the monetary authorities must intervene by ________
A) selling foreign exchange B) buying and selling the domestic currency C) raising the foreign interest rate D) buying foreign exchange
GDP could be calculated over:
A. a month. B. a quarter. C. a year. D. any time period.
Some people have argued that the government should provide free medical care to everyone. Under this system:
A. the price of medical care will ration resources efficiently. B. prices will not ration medical care so there will be no scarcity. C. the price of medical care will allocate resources efficiently. D. prices will not ration medical care so some other rationing method will be used.