If you know the cross elasticity between two goods is negative, then you know the goods are
A) substitutes.
B) normal goods.
C) complements.
D) inferior goods.
E) inelastic goods.
C
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The conclusion of the median voter model is that_____
a. private sector demands of the median voter influences their demand for public goods b. the median voter is omniscient c. public sector demand will be the demand of the median voter d. decision-making costs will be high if the median voter is rationally ignorant
Wage rate differentials between nations are likely to narrow as
a. the MRPs of workers in high-wage countries increase b. noncompeting labor markets become more prevalent c. workers move more freely to high-wage countries d. capital migrates to high-wage countries e. workers in high-wage countries become more educated
Franklin Roosevelt implemented the New Deal in the 1930s, and Congress passed the Full Employment Act of 1946 . Both were examples of the government adopting the ideas of
a. classical economics b. rational expectations economics c. supply-side economics d. neo-Keynesian economics e. Keynesian economics
Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.