The cross price elasticities among substitute goods will be extremely high when:
a. b and d.
b. they are very similar to each other.
c. people are consuming them frequently.
d. people consume them in equal quantities.
e. they are imperfect substitutes.
b
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Labor income includes:
A. interest, dividends, and rent. B. wages, salaries, and earnings of the self-employed. C. payments to owners of factories, machines, and buildings. D. profits, royalties, and rent.
Potential GDP would increase if
A. the rate of capital depreciation increased. B. the labor force decreased. C. the price level grew. D. the rate of capital growth increased.
Why would a firm knowingly hire lazy employees?
A) Lazy employees have positive marginal revenue product. B) Lazy employees have successfully sued firms in the past. C) The Americans with Disabilities Act mandates that laziness be considered a disability. D) Lazy employees make hard-working employees look good.
Assuming that banks have loaned all excess reserves, then an increase in checking account balances brought about by an increase in deposits is equal to
A) (the initial deposit) × (the reserve ratio). B) (total reserves) × ( the reserve ratio). C) (the initial deposit) × (1 / reserve ratio). D) (total reserves) × (1 / reserve ratio).