George always purchases the soda with the lowest price. For George, the cross price elasticity of demand for two brands of soda will be
A. equal to 0.
B. negative.
C. positive.
D. impossible to determine without more information.
Answer: C
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If property rights are not well enforced, all of the following are likely to occur except
A) a significant number of people will be willing to risk their funds by investing them in local businesses. B) economic efficiency will be reduced. C) an economy will produce inside its production possibilities frontier. D) fewer goods and services will be produced.
In 2011, Standard & Poor's (S&P) changed its rating on U.S. Treasury bonds from ________ based on the state of the federal government's budget deficit
A) "A" to "D" B) "AAA" to "AA+" C) "A+" to "B+" D) "A" to "AAA"
For a linear demand curve that is downward sloping, the marginal revenue curve
A) will be to the left of the demand curve and twice as steep. B) will be to the right of the demand curve and twice as steep. C) will be to the left of the demand curve and half as steep. D) will be the same as the demand curve.
When the isocost line is tangent to the isoquant, then
A) MRTS = -w/r. B) the firm is producing that level of output at minimum cost. C) the last dollar spent on capital yields as much extra output as the last dollar spent on labor. D) All of the above.