Suppose the cross-price elasticity of demand between quinces and muskmelons is 5 . Which of the following must be true?
a. Quinces are normal goods.
b. Muskmelons are normal goods.
c. If the price of quinces rises by $5, the demand for muskmelons will increase by 1.
d. If the price of muskmelons rises by $5, the demand for quinces will increase by 1.
e. Quinces and muskmelons are substitutes.
E
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A fiduciary monetary system is
A) fully backed by gold. B) dependent on barter for exchanges of goods and services. C) dependent on the public's faith to accept the currency. D) one which cannot have any inflation.
The market demand curve for mousetraps is
A) found by summing the quantities of mousetraps demanded at each income level by each buyer. B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. D) Both answers B and C are correct. E) Both answers A and C are correct.
Refer to above figure. In the absence of trade, what is the country's producer surplus?
What will be an ideal response?
Eliminating means requirements for government benefits would
a. raise saving and primarily benefit people with lower incomes. b. raise saving but primarily benefit people with higher incomes. c. reduce saving but primarily benefit people with lower incomes. d. reduce saving and primarily benefit people with higher income.