If goods X and Y are such that the cross price elasticity between them is negative, and if the income elasticity of X is negative, then these goods are
a. inferior complements
b. luxury complements
c. income elastic substitutes
d. normal substitutes
e. income elastic complements
A
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Endogenous growth theory supports the conclusion that ________
A) government spending cannot influence the level of research and development B) increased government spending on research and development is counterproductive C) per capita income growth is a function of real factors, such as the supply of money D) increased government spending on research and development is useful
Outsourcing refers to the process in which: a. a firm purchases service from another firm in another country. b. a firm hires laborers from a foreign market. c. the government of a country works toward providing social security and other rights to migrant workers. d. a firm purchases service from another firm
e. workers of a particular country seek employment in a firm of a foreign country.
The production possibilities frontier illustrates
A. the constant rate of technological progress. B. the fundamental concept of scarcity. C. the rapid growth of the U.S. economy. D. that guns always trade for butter.
A restriction of imports that is accomplished by a quota normally
a. can be accomplished also by a tariff. b. cannot be replicated exactly by imposing a tariff. c. can be accomplished also by an export subsidy. d. can be accomplished also by negotiations within GATT.