When two goods have negative cross elasticities of demand and positive income elasticities, they are:
a. Normal and substitutes
b. Normal and complements.
c. Inferior and substitutes.
d. Inferior and complements.
b
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Which of the following would be an example of a flow variable?
a. The amount of money needed to buy a car b. The amount of money a person has in her or her wallet c. The amount of income a person earns each week d. The amount of money a person has in a savings account e. None of these are flow variables
The estimated value of the U.S. government's unfunded liability to Social Security is:
A. $4.6 trillion. B. $4.8 trillion. C. $15.6 trillion. D. $20.5 trillion.
From the date a U.S. patent is granted to a firm, it ceases to be a potential source of monopoly profits after
A. 7 years. B. 20 years. C. 14 years. D. 1 year.
Refer to the below graph. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is a decrease in aggregate demand to AD2, then according to mainstream economists, if prices and wages are not flexible, this will result in an equilibrium at point:
A. E
B. B
C. C
D. D