Robert must always have cream in his coffee. For Robert, the cross price elasticity of demand for coffee and cream is
A) equal to 0.
B) negative.
C) positive.
D) impossible to determine without more information.
B
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The U.S. federal government obtains most of its revenues through taxes from three sources. Which of the following is not one of those three main sources of federal revenue?
A) corporate income taxes B) social insurance taxes C) sales and excise taxes D) individual income taxes
The circumstance in which financial assets are traded freely between countries is referred to as ________
A) purchasing power parity B) capital mobility C) free trade D) asset appreciation
The marginal cost of action choice X:
A. measures the additional cost of a small change in X. B. tends to decrease as X increases. C. measures the cost that a decision maker has already incurred by pursuing activity X. D. is minimized at the best level of activity X.
The classical economists believed that recessions
A. needed to be fought with monetary and fiscal policy. B. would probably develop into depressions. C. develop into inflations. D. would cure themselves.