A 3% increase in the price of tea causes a 6% increase in the quantity demanded of coffee. The cross-price elasticity of demand between coffee and tea is
A. -2.0.
B. -0.5.
C. 0.5.
D. 2.0.
Answer: D
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The interest parity condition indicates that the interest differential is equal to the
A) risk premium. B) forward premium. C) futures premium. D) arbitrage premium.
A default happens when a:
A. borrower fails to pay back a loan according to the agreed-upon terms. B. lender fails to allot money according to the terms set by the government. C. borrow pays back a loan early. D. bank fails to have enough cash on hand to give all depositors their money.
Refer to the diagram. The movement down the production possibilities curve from point A to point E suggests that the production of:
A. computers, but not bicycles, is subject to increasing opportunity costs.
B. bicycles, but not computers, is subject to increasing opportunity costs.
C. both bicycles and computers is subject to constant opportunity costs.
D. both bicycles and computers is subject to increasing opportunity costs.
Listening to a political ad or an ad for a new product usually requires:
a. Critical listening b. Intellect c. Emotions d. An extroverted personality