Which pair of goods is likely to have the largest positive cross-price elasticity?
A. Butter and margarine
B. Ramen noodles and a Rolex watch
C. Peanut butter and jelly
D. Cross-price elasticity is always negative, and simply reported in absolute value.
Answer: A
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According to the Taylor rule, the Federal Reserve sets interest rates in response to:
A. the inflation rate and the current output gap. B. the inflation rate and the unemployment rate. C. the current output gap and the target money supply growth. D. the S&P 500 index and the inflation rate.
Mandated on-the-job training is seen in the United States mainly as a(n)
a. useful spur to economic growth. b. proper use of legislative power. c. unwarranted governmental interference. d. necessary requirement for increased productivity.
Adam Smith's theory of the invisible hand posits the actions of independent, self-interested buyers and sellers will ________ lead to the most efficient allocation of resources.
A. rarely B. always C. often D. never
In the short run, the marginal cost curve crosses the average total cost curve at:
A. the minimum point of the average total cost curve. B. the maximum point of the average total cost curve. C. a point just below the average fixed cost curve. D. the point where the average total cost curve and average variable cost curve intersect.