Which pair of goods is most likely to have a negative cross-price elasticity?
A. All cross-price elasticities are negative, but often reported in absolute value.
B. Peanut butter and jelly.
C. Butter and margarine.
D. Milk and pencils.
B. Peanut butter and jelly.
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The new classical explanation of aggregate supply in the short run builds on research by
A) Irving Fisher. B) John Maynard Keynes. C) Robert Lucas. D) Robert Solow.
If the four-firm concentration ratio in an industry increases, the industry
a. must have become more competitive. b. must have become a monopoly. c. must have become less competitive, although not necessarily a monopoly. d. may or may not have become less competitive.
The manufacturer of a robotic vacuum sets a minimum price of $500 for its new model, the IR10. Shopping for a vacuum with a budget of $750, Lyndsey buys an IR10 for $600. Which of the following is true?
a. producer surplus of $100 b. consumer surplus of $100 c. producer surplus of $250 d. consumer surplus of $250
The federal budget process begins when federal agencies submit their budget requests to the:
A. Treasury Department. B. Council of Economic Advisors (CEA). C. Office of Management and Budget (OMB). D. Congressional Budget Office (CBO).