If two goods are substitutes, then their cross-price elasticity of demand is
A. between zero and minus one.
B. negative.
C. positive.
D. zero.
Answer: C
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One result of a minimum wage is
A) illegal hiring of people at wages below the minimum wage. B) more people with jobs. C) a change in the equilibrium wage. D) lower costs paid by firms. E) fewer people searching for work because they realize that firms have decreased the number of people hired.
A group of farmers in southwestern Pennsylvania selling locally raised natural beef would be identified as a
a. not-for-profit organization b. S corporation c. producer cooperative d. sole proprietorship e. cottage industry
In the extended version of the circular flow model,
a. resources flow from the government to firms b. taxes flow from foreign economies to the government c. goods and services flow from households to foreign economies d. resources flow from households to firms e. resource payments flow from households to the government
Which of the following best reflects the ability-to-pay philosophy of taxation?
a. an excise tax on coffee b. an excise tax on gasoline c. a progressive income tax d. a tax on residential property