The cross elasticity between two substitutes is always positive
Indicate whether the statement is true or false
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An inward shift of the production possibilities frontier represents
A) negative economic growth. B) a rise in the unemployment rate. C) technological improvement. D) positive economic growth.
Which of the following statements is false?
A. Externalities can sometimes be internalized through individual voluntary agreements. B. It would be a relatively easy matter to establish property rights in the air. C. Persuasion can be used in some cases to internalize externalities. D. Taxes and subsidies are sometimes used as corrective devices for market failures.
A firm is a price taker if it
A) always sells its output at the industry-determined price. B) takes consumer demand into consideration in setting its price. C) takes its production costs into consideration in setting its price. D) uses a pricing strategy to gain market share.
In the short-run macro model, a decrease in the money supply will
a. move the economy to the right along the aggregate expenditure line b. move the economy to the left along the aggregate expenditure line c. shift the aggregate expenditure line upward d. shift the aggregate expenditure line downward e. not affect the aggregate expenditure line