The cross elasticity of demand for strawberry jelly and grape jelly is likely to be
A) positive because they are substitutes.
B) positive because they are complements.
C) negative because they are substitutes.
D) negative because they are complements.
E) negative because they are inferior goods.
A
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Some types of aid limit or reduce potential benefits as a result of ______ , particularly when aid must be spent on goods or services from the donor country.
Fill in the blank(s) with the appropriate word(s).
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Which of the following is correct?
A. Both purely competitive and monopolistic firms are "price takers." B. Both purely competitive and monopolistic firms are "price makers." C. A purely competitive firm is a "price taker," while a monopolist is a "price maker." D. A purely competitive firm is a "price maker," while a monopolist is a "price taker."
Technological progress occurs when the economy gets more output:
A. without any more capital or labor. B. by using more capital per worker. C. by using more capital but not more workers. D. by using more labor but not more capital.