The price elasticity of demand between milk and soda is likely to be
a. negative, because the goods are complements
b. positive, because the goods are complements
c. negative, because the goods are substitutes
d. positive, because the goods are substitutes
e. 0, because the goods are not usually consumed by the same person at one time
D
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A local flower grower grows products in a plot of land, which is exceptionally colorful and is admired by many passersby. There is no way to charge for this in the price of the flowers. We can safely conclude that
A. the florist produces too many flowers. B. the florist produces too few flowers. C. the florist produces the right amount of flowers. D. society pays the socially optimal amount for the flowers.
Currency circulated by banks that could be redeemed for gold was called
A) junk bonds. B) banknotes. C) gold bills. D) state money.
Currency appreciation benefits importers
Indicate whether the statement is true or false
The two economic groups competing for power during the transition from mercantilism to capitalism were:
A. craft guilds and industrialists. B. craft guilds and the lords of the manor. C. merchants and the lords of the manor. D. serfs and craft guilds.