When two goods are complements
A) the demands for both goods will be elastic.
B) cross price elasticity of demand will be 0.
C) cross price elasticity of demand will be negative.
D) cross price elasticity of demand will be positive.
C
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The marginal benefit of an activity is i. the benefit from a one-unit increase in the activity. ii. the benefit of a small, unimportant activity. iii. measured by what the person is willing to give up to get one additional unit of the activity
A) i only B) ii only C) iii only D) i and iii E) ii and iii
If Callum is consuming his utility maximizing bundle and the price of one good rises, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Callum do?
A) MU/P has increased and Callum should buy less of this good. B) MU/P has decreased and Callum should buy less of this good. C) MU/P has increased and Callum should buy more of this good. D) MU/P has decreased and Callum should buy more of this good.
Whenever there is a surplus in the current account, the capital account: a. will be negative
b. will be positive. c. will be zero. d. could be negative, positive, or zero.
Which of the following is NOT an example of a good with network economies?
A. Internet service B. A computer printer C. A cell phone D. Facebook