If two goods are complements,
A. cross price elasticity of demand will be negative.
B. the demands for both goods will be elastic.
C. cross price elasticity of demand will be 0.
D. cross price elasticity of demand will be positive.
Answer: A
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If the expected price level exceeds the actual price level in an economy, _____
a. firms increase production in the short run b. firms decrease production in the short run c. firms maintain production in the short run but increase prices d. firms maintain production in the short run but decrease prices e. firms raise prices in the short run.
In England, the Thatcher government substituted a “poll tax” for the local property tax. People took strong exception to the tax, which is basically a head or “lump sum” tax. The principle of taxation such a tax violates is called
A. the benefits principle. B. the excess burden principle. C. the ability-to-pay principle. D. the constitutional principle.
Representative commodity money retained its value because
A) it was an actual commodity. B) it was a fiat money. C) it was backed by the government. D) it could be exchanged for an actual commodity.
Which of the following accurately describes growth rates in the United States from 1900 to the present?
A) Growth rates have risen continuously from 1900 to the present. B) Growth rates rose until the 1970s, slowed until the 1990s, rose again until 2005, and then slowed again to the present. C) Growth rates rose until the 1970s and then fell until the present. D) Growth rates have fallen continuously from 1900 to the present.