In September 2006, the Food and Drug Administration recommended that Americans avoid eating bagged raw spinach in the wake of an outbreak of E. coli bacteria
Following this recommendation, the food industry looked at alternatives and many turned to arugula. One Chicago distributor claimed, "The sale of the stuff has gone through the roof." Based on this information
A) the cross-price elasticity between arugula and spinach is negative.
B) the cross-price elasticity between arugula and spinach is positive.
C) the price elasticity of arugula is positive while the price elasticity of spinach falls to zero.
D) arugula is a normal good while raw spinach is an inferior good.
B
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Fill in the blank(s) with the appropriate word(s).
The market mechanism satisfies all consumer desires and maximizes business profits.
Answer the following statement true (T) or false (F)
In 2014, national defense spending as a proportion of GDP was highest in
A. Germany. B. the United States. C. Japan. D. the United Kingdom.
What phase of the business cycle is our economy experiencing at the present time? Justify your answer.
What will be an ideal response?