Suppose that the amount of portable power banks demanded increases by 10 percent when the price of personal computers falls by 5 percent. The cross price elasticity of demand between portable power banks and personal computers is
A) 0.5.
B) -2.0.
C) -0.5.
D) 2.0.
Answer: B
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Signaling is the attempt by the uninformed side of the market to uncover the relevant but hidden characteristics of the informed party
a. True b. False
Which of the following statements is false?
a. The sum of the unemployment rate and the employment rate always equals 100 percent. b. The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population. c. The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population. d. a, b, and c
Voluntary trade promotes economic progress because
a. it discourages businesses from seeking lower per-unit costs through adoption of mass production methods. b. it discourages trade based on the comparative advantage of suppliers. c. it moves goods, services and resources from people who value them less to individuals who value them more. d. This is a trick question; voluntary exchange does not promote economic progress.
A firm in a perfectly competitive industry is a
A) price taker. B) quantity taker. C) profit maker. D) price maker.