If the cross-price elasticity of demand between fish and chicken is 2, then a 2% increase in the price of fish will result in a ________ in the quantity of chicken demanded.
A. 10% increase
B. 4% increase
C. 1% increase
D. 20% decrease
Answer: B
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Scarce government resources in developing countries would be best spent on
a. circulating basic health information b. modern medical equipment c. medical schools d. health care insurance e. none of the above
Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue from the last unit of output must be
a. $1 b. $1.50 c. $4 d. $5 e. $20
What are the different components of aggregate expenditure and how do they together form the aggregate expenditure line?
Refer to the above figure. A movement from Point A to Point B is caused by
A. a decrease in the price of the good in that figure. B. an increase in income. C. an expectation of a decrease in the price of the good in that figure. D. all of these.