Suppose that the cross elasticity of demand for Dell computers with respect to Hewlett Packard computers is 2.1
If Hewlett-Packard lowers its price by 5 percent, other things being equal, what will be the percentage change in the quantity of Dell computers demanded? A) 2.4 percent
B) -10.5 percent
C) 10.5 percent
D) -42 percent
B
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The Phillips curve relates the inflation rate to
a. the unemployment rate. b. GDP. c. disposable personal income. d. the interest rate.
Which of the following is an example of an external cost?
A) a grove of trees planted in a park in Seattle B) a library built in Philadelphia C) a new, faster computer chip D) an oil spill off the coast of South America E) a student graduating from college
In the short run, a monopolistically competitive firm
A) always earns positive economic profits. B) never earns positive economic profits. C) can earn positive, negative, or zero economic profits. D) always earns positive accounting profits.
Tanner decides to buy a bond from Joe for $1,000. The money supply will
A. increase by more than $1,000. B. decrease by $1,000. C. neither increase nor decrease. D. increase by $1,000.