If two goods are complementary goods, then
A. The cross-price elasticity sign is not important.
B. The cross-price elasticity sign will be negative.
C. The cross-price elasticity will be greater than 1.
D. The cross-price elasticity sign will be positive.
Answer: B
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Ed Van Zaig is considering opening a sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and use a building that he owns and currently rents to his brother for $6,000 a year. His costs at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?
a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
Two explanations for increasing wage inequality are ________ and ________.
A. increased labor supply; a slowdown in productivity growth B. technological progress; a modernized capital stock C. increased worker mobility; transition aid D. globalization; skill-biased technological change
A firm sells 300,00 . units per week. It charges $ 35 per unit, the average variable costs are $ 40, and the average costs are $ 55, the firm should
a. Shut-down as the firm is making a loss of $15 million per week b. Shut-down as the firm cannot cover the variable costs c. Both a and b d. None of the above
"I'm tired of eating muffins for breakfast. Today I am trying a bagel." This statement most clearly reflects the: a. ceteris paribus condition
b. the law of supply. c. law of diminishing marginal utility. d. law of comparative advantage.