A negative cross elasticity indicates that two goods are complements.
Answer the following statement true (T) or false (F)
True
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Refer to the accompanying figure, which shows the market for cups of coffee. At the original market equilibrium:
A. 50 cups are sold per hour at a price of $1.00 each. B. 60 cups are sold per hour at a price of $1.50 each. C. 40 cups are sold per hour at a price of $2.00 each. D. 50 cups are sold per hour at a price of $2.50 each.
Exhibit 11-7 GDP data (billions of dollars) Personal consumption expenditures$5,207 Interest425 Corporate profits735 Government spending1,406 Depreciation830 Rental income146 Gross private domestic investment1,116 Compensation of employees4,426 Exports870 Imports965 Indirect business taxes553 Proprietors' income520 Personal taxes886 Social Security taxes432 Transfer payments376 In Exhibit 11-7, and using the expenditures approach, gross domestic product (GDP) is:
A. $6,807 billion. B. $7,082 billion. C. $7,634 billion. D. $7,637 billion.
What are the key characteristics of an oligopoly?
What will be an ideal response?
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.