_______ is the percentage change in the quantity of good A that is demanded as a result of a percentage change in the price of good B.
a. Elasticity of savings
b. Cross-price elasticity of demand
c. Income elasticity of demand
d. Wage elasticity of labor supply
b. Cross-price elasticity of demand
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What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why
What will be an ideal response?
Technological innovations will cause:
a. the production possibilities curve to stay the same. b. the production possibilities curve to shift to the left. c. the production possibilities curve to shift to the right. d. an economy to operate below its production possibilities curve. e. the production possibilities curve to increase or decrease.
An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by:
a. $1,000. b. $9,000. c. $900. d. $190. e. inadequate information is given.
Legal or governmental restrictions that give monopolistic advantages to a firm include all of the following EXCEPT
A) economies of scale. B) tariffs. C) licenses. D) franchises.