If a 10 percent decrease in the price of product A brings about a 3 percent increase in the sales of product B, then:
a. products A and B are complementary.
b. the cross elasticity of demand between these two products is positive.
c. products A and B are substitutes.
d. the demand for these products is inelastic.
e. the total revenue earned from product A will decrease.
a
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Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many clocks will Belize gain compared to the "without trade" numbers?
A) -100 B) 100 C) 120 D) 250
Export subsidies lead to
A) greater production of exportables and higher internal prices for these goods. B) greater production of exportables and lower internal prices for these goods. C) greater production of importables and higher internal prices for these goods. D) None of the above.
Monopolistic competitive firms in the long run earn:
a. positive economic profits. b. zero pure economic profits. c. negative economic profits. d. none of these.
If you knew that an investment was going to pay you $215,892.50 in 10 years, and you knew that the annual interest rate over that time would be 8 percent, you could calculate the present value to be:
A. $100,000. B. $150,000. C. $125,000. D. $80,000.