The price elasticity of demand between rifles and bullets is likely to be:
a. negative, because the goods are complements.
b. positive, because the goods are complements.
c. negative, because the goods are substitutes.
d. positive, because the goods are substitutes.
a
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Most developing countries rely on foreign financing because:
a. ?these countries do not generate enough savings to fund investments. b. ?foreign financing is more reliable than domestic investments. c. ?investors do not recognize their potential gains. d. ?foreign countries are more than willing to invest in developing countries. e. ?their governments are unstable and run on deficits.
A decrease in which of the following would decrease the tax wedge?
A) federal budget deficit B) national debt C) money supply D) marginal tax rate
If the deficit is 0.02 times GDP, the existing debt—GDP ratio is 0.5, and the growth rate of nominal GDP is 0.03, then the change in the debt—GDP ratio is
A) +0.05 B) +0.025. C) 0. D) -0.025.
The endowment point is the consumption bundle in which
A) first-period consumption is equal to zero. B) second-period consumption is equal to zero. C) the consumer finds the most utility. D) consumption is equal to disposable income in each period.