A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes.
a. true
b. false
Answer: a. true
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Suppose that a sporting goods store had $800 of golf balls on its shelves at the beginning of 2016 and $1,300 at the end of 2016. The amount of inventory investment included in GDP would be
A) $500. B) $800. C) $1,300. D) $2,100.
Which of the following best describes an argument for convergence?
a. The development of new human capital can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening. b. The development of new technology can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening. c. The development of new physical capital can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening. d. The development of new financial capital can provide a way for an economy to sidestep the diminishing marginal returns of capital deepening.
The Federal Reserve Act of 1913 tasked the central bank with which of the following purposes?
a) To establish more effective supervision of the banking system in the United States. b) To keep inflation high. c) To keep employment low. d) To provide employment in the federal government.
When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to:
A. more efficiently allocate resources. B. overvalue future resources by considering them "priceless." C. stop resource extraction. D. extract and use resources as quickly as possible.