The price elasticity of demand between milk and soda is likely to be:
a. negative, because the goods are complements.
b. positive, because the goods are complements.
c. negative, because the goods are substitutes.
d. positive, because the goods are substitutes.
e. 0, because the goods are not usually consumed by the same person at one time.
d
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International trade tends to lower the value of the multiplier because
A. imports fall as GDP increases. B. net exports fall as GDP increases. C. net exports tend to rise as GDP increases. D. exports fall as GDP increases.
Difficulties in determining the cyclical pattern in real wage rates from aggregate data are primarily caused by biases due to
A) substitution behavior. B) substantial differences across different business cycles. C) variations in the composition of the labor force over the business cycle. D) changing policy responses to business cycles.
Which of the following would NOT be a result of a contractionary monetary policy?
A) Interest rates would rise. B) Foreign goods would become more expensive to U.S. residents. C) Net exports would decline. D) Imports would rise.
Institutions are:
a. the rules of the game b. how resources are allocated c. illustrations of the laws of scarcity d. organizations that operate on a non-profit basis e. none of the above