Suppose that the amount of computer printers demanded increases by 20 percent when the price of personal computers falls by 10 percent. The cross price elasticity of demand between computer printers and personal computers is
A) 0.5.
B) -2.0.
C) -0.5.
D) 2.0.
B
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A firm is said to have excess capacity when it produces the amount of output
A) such that price is greater than marginal cost. B) such that marginal revenue is greater than marginal cost. C) smaller than that which minimizes average total cost. D) larger than that which minimizes average total cost.
The fact that the supply curve for a given firm's bond is vertical reflects the fact that
a. at any given point in time there are a fixed number of those bonds in existence. b. firms adjust the number of bonds they issue on a daily basis c. investors do not adjust their portfolios when interest rates change d. government limits the amount of bonds a company can issue
Policies that redistribute income
a. reduce the rewards of high-income earners. b. raise the rewards of low-income earners. c. reduce the incentive to earn high income. d. All of the above are correct.
The poverty line is set by the government so that 10 percent of all families fall below that line and are thereby classified as "poor."
a. True b. False Indicate whether the statement is true or false