Chicken and fish are substitutes. Therefore, the cross elasticity of demand between chicken and fish is
A. negative.
B. positive.
C. zero.
D. Any of the above is possible.
Answer: B
You might also like to view...
Suppose your tastes over consumption and leisure have constant elasticity of substitution. I observe that, when your wage went up, you continued to work the same number of hours. From this, I can conclude that you have Cobb-Douglas tastes.
Answer the following statement true (T) or false (F)
Which of the following is true of an increase in the federal government budget surplus? a. An increase in surplus results in a decrease in the national saving. b. An increase in surplus shifts the aggregate demand curve rightward. c. An increase in surplus increases the federal debt
d. An increase in surplus dampens aggregate demand in the short run. e. An increase in surplus increases the natural rate of unemployment.
Assume a nation has a fixed exchange rate, and the central bank lowers the discount rate. What is the net effect on the unemployment rate? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium
a. The unemployment rate rises. b. The unemployment rate falls. c. The unemployment is not affected. d. The change in the unemployment rate depends on the degree of international capital mobility.
The __________ the opportunity cost of doing something, the __________ likely a person will do that something
A) lower; less B) lower; more C) higher; more D) higher; less E) b and d