Which of the following two goods is likely to have a negative cross-price elasticity of demand?
A. Peanut butter and tuna fish
B. Left and right shoes
C. Coke and Pepsi
D. Margarine and butter
Answer: B
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A quota is a
A) quantitative restriction on an import imposed by the importing country. B) quantitative restriction on an import imposed by the exporting country. C) restriction on how much a customer can buy of a scarce good imposed by the seller. D) tax that is imposed on a good when it crosses an international boundary. E) trade barrier that does not harm domestic consumers of the good or service.
An example of a U.S. import would be:
A. a French bottle of wine consumed by an American. B. an Apple computer, made in the U.S., purchased by a U.S. college student who plans to study abroad in France. C. a bushel of apples that Canadians pick and enjoy during a lovely fall day in Vermont. D. an Apple computer, made in the U.S., purchased by a French student.
The immediate effect of a member bank's sale of U.S. government securities to the Fed is
a. an increase in that bank's required reserves. b. a decrease in that bank's required reserves. c. an increase in that bank's excess reserves. d. a decrease in that bank's excess reserves.
What has been the effect of hydraulic fracturing?
A. increased Superfund payments and disbursements B. reduced reliance on fossil fuels C. increased availability on renewable energy D. increased production of and lower prices for natural gas and oil