If the cross-price elasticity between goods A and B is negative, we know the goods are:
A. inferior goods.
B. substitutes.
C. inelastic.
D. complements.
Answer: D
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The U.S. interest rate minus the foreign interest rate is called the ________
A) foreign interest rate differential B) U.S. bond rate differential C) U.S. interest rate differential D) U.S. stock yield differential
During the colonial period, regulation of business activities was the right of government and its duty—extensive regulation was done, such as licensing, inspection, price fixing, etc
Which statement best describes regulation in the decades after 1789? (a) Regulation continued at about the same level as during the colonial period. (b) As commerce and manufacturing became more complex, the old police-power controls by detailed inspection became increasingly difficult to maintain and many controls were abolished by the states. (c) Because the economy was becoming more complicated, the task of regulation shifted to the federal government. (d) Regulation was abandoned because it was inconsistent with property rights guaranteed by the Constitution.
A large majority of economists favor eliminating the minimum wage
a. True b. False Indicate whether the statement is true or false
The term "property rights" refers to
A) the physical possession of a house or any other property which the owner legally purchased. B) the ability to exercise control over one's own resources within the confines of the law. C) the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud. D) the government's right to appropriate land from wealthy land owners to redistribute to peasants.