Whether a cross-price elasticity of demand is positive or negative indicates whether the:
A. goods are substitutes or complements.
B. elasticity is reported in absolute value.
C. good's demand is elastic or inelastic.
D. good is a luxury or a necessity.
A. goods are substitutes or complements.
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A country reports that its inflation rate and unemployment rate have both increased. These changes could be the result of
A) a movement downward along the short-run Phillips curve. B) a movement upward along the short-run Phillips curve. C) a downward shift of the short-run Phillips curve. D) an upward shift of the short-run Phillips curve. E) a leftward shift of the long-run Phillips curve.
If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
A) eat the slice of pizza. B) not eat the slice of pizza. C) be unable to choose between eating or not eating. D) eat half the slice. E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.
When measuring the benefits from investing in human capital
A) the only benefits come from the increase in salary because of going to school. B) in addition to the monetary benefits, the benefit from expanding horizons should be included. C) we must include the costs of tuition and books but not the money made from part-time jobs. D) we must include the foregone earnings in the benefit calculation.
Government-run employment agencies and public training programs both seek to reduce frictional unemployment
a. True b. False Indicate whether the statement is true or false