Which set of goods is most likely to have the larger cross-price elasticity of demand?
a. Coke and Pepsi
b. Computer hardware and computer software
c. Fish and bicycles
d. Gasoline and SUVs
a
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Refer to Figure 13-1. The marginal revenue from the increase in price from P0 to P1 equals
A) the area (A - D). B) the area (B + D - A). C) the area (C - B). D) the area A.
Which of the following is a direct implication of the view that childbearing is an economic decision?
(a) People will not have additional children unless they can earn a profit from doing so. (b) Social factors have no effect on childbearing decisions. (c) Compulsory education will increase fertility because educated children have the potential to earn higher salaries. (d) Fertility should fall with improved opportunities for women to work in jobs outside the home.
The higher is the tax on productive activity, the more likely that people will attempt to evade those taxes by diverting their economic activity from the formal, reported economy to an underground, "off-the-books" economy
Indicate whether the statement is true or false
Holding other factors constant, a decline in the price of new capital goods will:
A. decrease national saving. B. decrease investment. C. increase investment. D. increase national saving.