Assume that product X has a positive cross elasticity with respect to shoes. If the price of shoes rises
A) the demand for product X will decrease.
B) the quantity demanded for product X will increase.
C) the demand for shoes will fall.
D) the demand for product X will increase.
D
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In game theory, strategies include ________
A) all possible actions of each player B) only the winning action of each player C) all possible actions and payoffs of each player D) the payoff matrix
The basic idea behind the convergence theory is:
A. also the basic idea behind the catch-up effect. B. each additional unit of capital provides larger gains when you're coming from behind. C. that countries starting at low levels of income will tend to grow at much faster rates than those starting with high levels of income. D. All of these are true.
Economists prefer to talk about the "quantity demanded" rather than the "quantity needed" or the "quantity wanted" because
What will be an ideal response?
If a severe natural disaster reduced the population of a city, one would expect a natural monopoly to:
A. raise prices. B. split into two firms. C. increase sales. D. merge with a competitor.