If the utility for two goods "x" and "y" can be measured as U = y, then it can be concluded that
A) "x" and "y" are perfect complements.
B) "x" is a "bad".
C) the indifference curves on the x,y graph are upward sloping where "x" is measured on the horizontal axis.
D) the indifference curves on the x,y graph are horizontal where "x" is measured on the horizontal axis.
D
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Suppose we estimate that the demand elasticity for fine leather jackets is -.7 at their current prices. Then we know that:
a. a 1% increase in price reduces quantity sold by .7%. b. no one wants to buy leather jackets. c. demand for leather jackets is elastic. d. a cut in the prices will increase total revenue. e. leather jackets are luxury items.
Most firms have
a. no monopoly pricing power. b. some monopoly pricing power. c. absolute monopoly pricing power. d. the ability to earn monopoly profits.
The disastrous famine in North Korea was the result, in great part, of the government's efforts to develop
a. new trade bloc b. stronger military c. market economy d. large middle class
Equilibrium GDP in excess of potential GDP eventually will cause the aggregate
A. demand curve to shift outward. B. supply curve to shift outward. C. supply curve to shift inward. D. demand curve to become flatter.