If the cross-price elasticity of demand for goods A and B is zero, this means the two goods are unrelated
Indicate whether the statement is true or false
TRUE
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Holding everything else constant, if the nominal interest rate decreases, the interest paid on the debt will ________ the debt-to-GDP ratio, and nominal GDP growth will ________ the debt-to-GDP ratio
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Suppose you have a choice between receiving a lump-sum payment of $10,000 today or four annual payments of $2,750 (with the first payment one year from today). Of the following, which is the lowest annual interest rate at which you would prefer the lump-sum payment over the four annual payments?
a. 2% b. 5% c. 7% d. 10%
Which would cause an increase in the supply of a product at a given price?
a. An increase in the costs of producing a substitute product b. A reduction in the cost of resources to produce the product c. An increase in the costs of producing a complementary product d. An increase in the price of the product
A competitive firm's supply curve is identical to its marginal cost curve
Indicate whether the statement is true or false