The cross elasticity of demand for substitutes is always positive
Indicate whether the statement is true or false
TRUE
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Which of the following does not describe a characteristic of short-term economic fluctuations?
A. Expansions and recessions are felt in only a few sectors of the economy. B. The unemployment rate rises during recessions. C. Durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries. D. Expansions and recessions are irregular in length and severity.
A student who just graduated from college during an economic expansion but has yet to find a job would most likely be
A) structurally unemployed. B) frictionally unemployed. C) cyclically unemployed. D) seasonally unemployed.
What happens to saving when interest rates rise?
A. It increases. B. It decreases. C. It can increase or decrease. D. Saving decisions are independent of interest rates.
Which statement is true?
A. The federal personal income tax is a proportional tax. B. The cigarette tax is an excise tax. C. The tax on gasoline is a direct tax. D. None of these statements are true.