Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand?
a. 3.0.
b. 1.5.
c. 0.2.
d. 2.0.
e. 0.3.
d
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The above figure shows the PPF for a country that produces computers and computer factories. The nation's production possibilities frontier is PPF0. At which of the following production points would the economy grow most rapidly?
A) Point A B) Point B C) Point C D) It makes no difference among the three points because they are all production efficient. E) More information is needed to answer the question.
Which of the following statements best describes “bracket creep” within the U.S. income tax code?
a. Until the late 1970s, if real wages increased along with inflation, people were moved into higher tax brackets and owed a higher proportion of their income in taxes, even though their nominal income had not risen. b. After the late 1970s, if real wages increased along with inflation, people were moved into higher tax brackets and owed a higher proportion of their income in taxes, even though their nominal income had not risen. c. Until the late 1970s, if nominal wages increased along with inflation, people were moved into higher tax brackets and owed a higher proportion of their income in taxes, even though their real income had not risen. d. After the late 1970s, if nominal wages increased along with inflation, people were moved into higher tax brackets and owed a higher proportion of their income in taxes, even though their real income had not risen.
A company such as Microsoft or Pepsi Co. is a legal hassle to organize, difficult to monitor, and possibly could double tax income. It is an example of a:
A. sole proprietorship. B. corporation. C. partnership. D. consumer.
Suppose that Silvia's Dance Studio uses both labor and capital to teach dance lessons. Given her current mix of labor and capital, the cost efficiency of labor is 1 dance lesson per dollar, and the cost efficiency of capital is 5 dance lessons per dollar. Silvia should
A. Use only labor to produce the lessons. B. Use only capital to produce the lessons. C. Hire less labor and use more capital. D. Use less capital and hire more labor.