Tacos and pizza are substitutes. If a 2 percent change in the price of a taco leads to a 4 percent change in the demand for pizza, the cross elasticity of demand equals
A) -1/2.
B) 1/2.
C) 2.
D) -2.
E) 4.
C
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A decrease in monetary base ________ the quantity of money, the interest rate ________, and the quantity of money demanded ________
A) decreases; falls; decreases B) decreases; falls; increases C) decreases; rises; increases D) decreases; rises; decreases E) increases; falls; decreases
In Western nations, the desire for the incredible fruits of the materialist world may often
a. lead to very low opportunity costs of foreign aid b. lead to low birth rates and high death rates c. lead to an abandonment of the LDCs d. come at the expense of tradition e. lead to very high opportunity costs of innovation
Suppose Iran imposes a tariff on lumber. For the tariff to have any effect, it must be the case that
a. Iran is an exporter of lumber. b. the domestic quantity of lumber supplied exceeds the domestic quantity of lumber demanded at the world price without the tariff. c. the world price without the tariff is less than the price of lumber without trade. d. the world price without the tariff is greater than the price of lumber without trade.
The process of entry and exit into a monopolistically competitive market causes:
A. the firm's demand curve to shift left and/or right. B. the firm's marginal cost curve to shift straight up and/or down. C. the firm's supply curve to shift left and/or right. D. the firm's average total cost curve to shift left and/or right.