The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be
A) negative no matter if subscribers consider the services substitutes or complements for each other.
B) positive if subscribers consider the services substitutes for each other.
C) negative if subscribers consider the services substitutes for each other.
D) positive if subscribers consider the services complements to each other.
B
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The United States' economy would be operating at full employment with labor unemployment rate of ___ percent and a capacity utilization rate of _____ percent.
A. 5; 95 B. 5; 85 C. 10; 95 D. 10; 85
Economies of scale refer to:
A. the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. B. public investments in highways, schools, utilities, and such. C. the fact that large producers may be able to use more efficient technologies than smaller producers. D. the reallocation of labor from less-productive to more-productive uses.
Under fixed exchange rate, in general
A) the domestic and foreign interest rates are equal, R = R . B) R = R + (Ee - E)/E. C) the foreign and domestic interest rates are unequal. D) the expected rate of domestic currency depreciation is high. E) the expected rate of currency depreciation is one.
Which of the following is correct? The supply curve will shift when
A) income, preferences, or the number of suppliers change. B) income, preferences, or the number of buyers change. C) income, preferences, or production technology changes. D) the number of sellers and the number of buyers change. E) production technology and input prices change.