If the quantity of Big Macs demanded falls from 2.0 million to 1.6 million as the price of Whoppers falls from $1.40 to $.80, the cross-price elasticity of demand for Big Macs is:
A. ?2.5.
B. 0.4.
C. ?0.4.
D. 2.5
Answer: B
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What characteristic do both human and physical capital share?
A) Both are controlled by the government. B) Current costs are incurred for future benefits. C) The use of both exhibits rivalry. D) They can easily be transferred to new ownership.
An indifference map states:
a. indifference curves farther from the origin yield higher levels of total utility. b. that the consumer's income varies with the level of the indifference curve. c. indifference curves closer to the origin yield higher levels of total utility. d. that the points on either parts of indifference curves are preferred to the midpoint.
Over the 1980s and 1990s, countries with sound fiscal, monetary, and trade policies and strong rule of law combined with large amounts of aid:
A. grew at 1 percent, indicating the necessity of good policy in conjunction with aid. B. still failed to grow, indicating new methods for furthering development are needed. C. saw GDP shrink by 1 percent, indicating corruption and inefficient use of funds is rampant. D. None of these statements is true.
The high quality segment of the market may also be the same as the
A) unitary elasticity segment. B) low elasticity segment. C) high elasticity segment. D) economic profit segment.