If two goods are substitutes, the cross-price elasticity of demand must be
A) negative.
B) positive.
C) zero.
D) infinite.
B
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Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii B. i and ii C. Only iii D. i and iii E. Only i
When you work to support your lifestyle, you are making a tradeoff
a. True b. False Indicate whether the statement is true or false
A demand schedule relates prices of a particular good to quantities demanded
a. True b. False Indicate whether the statement is true or false
The statement "balancing the budget on the backs of the poor" refers to
A. Transfer payment cuts in order to reduce government expenditures. B. Government spending cuts on public parks in order to reduce government expenditures. C. Tax increases on the poor in order to increase government revenues. D. Government spending increases in order to increase aggregate expenditures.