The cross-price elasticity of demand between bananas and apples is most likely:
A. positive.
B. negative.
C. zero.
D. More information is needed to determine.
Answer: A
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The pollution created when coal is burned by utilities to generate electricity is an example of ________
A) a marginal benefit to coal producers B) a welfare cost C) an external cost D) a cost paid by the utilities
A pessimistic view of the 1986 tax reform is that Congress simplified the tax code _____
a. because it represented a Pareto superior move b. created new loophole opportunities that did not exist previously c. in order to increase the efficiency in the system d. because it was in the best interests of the special interests
Saltbricks will be considered as money if they are generally acceptable to sellers in exchange for goods and services
a. True b. False Indicate whether the statement is true or false
The market system automatically corrects a surplus condition in a competitive market by:
a. Reducing the price of the commodity in question while increasing the quantity demanded b. Raising the price of the commodity in question while decreasing the quantity demanded c. Reducing the price of the commodity in question while decreasing the quantity demanded d. Raising the price of the commodity in question while increasing the quantity demanded