The cross elasticity of demand is
A) the percentage change in the demand of one good divided by the percentage change in price of another good.
B) the change in the price of one good divided by the change of quantity demanded of another good.
C) the percentage change in the quantity demanded of one good divided by the percentage change in the quantity demanded of another good.
D) the percentage change in the price of one good divided by the percentage change in the price of another good.
A
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The table above lists six points on the production possibilities frontier for grain and cars. From this information you can conclude that production is inefficient if this economy produces
A) 6 tons of grain and 18 cars. B) 4 tons of grain and 26 cars. C) 2 tons of grain and 27 cars. D) 8 tons of grain and 10 cars.
The amount of redistribution in the United States has increased considerably since 1968 . Over that same period, the percentage of households in poverty has _____
a. fallen b. risen c. remained constant d. fell until 1982 at which point it began rising again
If everyone earned the same income, the Lorenz curve would be
A) a rectangular hyperbola. B) a straight line from the origin at a 45-degree angle. C) the horizontal axis. D) very bowed from the diagonal.
In the United States, the average length of time people spend unemployed is
A) approximately one month. B) between two and three months. C) between ten and eleven months. D) greater than twelve months.