"The recent availability of satellite television has reduced the price of cable television subscriptions." Based on this statement, what may be concluded about price, cross-price, or income elasticity of demand?
What will be an ideal response?
The availability of a substitute will likely increase the price elasticity of demand for Cable TV. The cross-price elasticity of satellite TV and cable TV is positive, suggesting that these goods are substitutes.
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When using the income approach to calculate nominal GDP, you should ________.
A. subtract transfer payments B. add transfer payments C. subtract indirect business taxes D. add indirect business taxes
What are the two important properties of all models?
What will be an ideal response?
Physical capital differences across countries can be seen in the fact that
A) more advanced economies typically have more sophisticated technology. B) the iPhone's components are produced in 30 countries. C) furniture factories in China use machines like those in North Carolina. D) students in India study the same subjects as those in the United States. E) advanced economies produce 53 percent of the world's income.
The best estimate for the size of overseas trade as a proportion of national income in 1774 is:
a. 0%-5%. b. 15%-20%. c. about 50%. d. 70%-75%.