Which of the following pairs of goods is most likely to have a positive cross-elasticity of demand?
A. Steak and hamburger.
B. Hamburgers and hamburger buns.
C. Fighter jets and pencils.
D. College professors and textbooks.
Answer: A
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Countries that trade a small amount with a single foreign country tend to float their exchange rate to the foreign country's currency
Indicate whether the statement is true or false
Which of the following is correct?
a. The Fed can control the money supply precisely. b. The amount of money in the economy does not depend on the behavior of depositors. c. The amount of money in the economy depends in part on the behavior of banks. d. None of the above is correct.
Inputs to production do NOT include
A. land. B. business know-how. C. labor. D. average product.
Suppose you are told that the equilibrium price of bananas has increased, while the equilibrium quantity of bananas has fallen. You are also told that either the demand changed or supply changed, but not both. Which of the following must have occurred?
A. Supply increased. B. Supply decreased. C. Demand decreased. D. Demand increased.