Two goods are complementary if:
a. they are part of the basic food group.
b. each performs the same basic task.
c. the cross elasticity of demand is positive.
d. they are used together.
e. the income elasticity of demand is negative.
d
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Benefit-cost analysis identifies the
a. allocatively efficient level of risk b. the level of risk at which MSB and MSC of risk reduction are equal c. both (a) and (b) d. none of the above
Use the following graph, which shows the supply and demand curves for dollars in the pound/dollar market, to answer the next question,
Assume that D1 and S1 are the initial demand for and supply of dollars. Suppose that Britain's demand for dollars increases from D1 to D2. If the British government wishes to fix the exchange rate at the initial level, it should ________.
A. buy and add more to its dollar reserves B. encourage the British to import more U.S. products C. sell pounds in exchange for U.S. dollars D. sell some of its dollar reserves
The AIC is a statistic
A) that is used as an alternative to the BIC when the sample size is small (T < 50) B) often used to test for heteroskedasticity C) used to help a researcher chose the number of lags in a time series with multiple predictors D) all of the above
When Adam Smith's ten pin workers specialized, they were able to increase output of pins in a day from 200 to 48,000. One reason for the increase in pin output was due to
A. the time saved when workers do not need to shift from one task to another. B. new machinery. C. the bonus they received when they produced more pins. D. the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white.