A positive cross elasticity of demand means two goods
a. have downward-sloping demand curves
b. are substitutes and may belong to the same market
c. are complements and may belong to the same market
d. are normal goods
e. have upward-sloping demand curves
B
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The amount of funds the borrower receives from the lender with a simple loan is called the
A) principal. B) equity. C) claim. D) collateral.
Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier
If the production in the economy is centrally planned (and not market oriented) so that the MRS for the current production level is 3 but the MRT is 2, then there will be an excess ________ for milk and an excess ________ for honey. A) demand, supply B) demand, demand C) supply, demand D) supply, supply E) The market is in equilibrium, and there are no imbalances in supply or demand.
The highest expenditure on a security item found in national spending at the federal, state, and local level is on
a. police b. fire c. corrections d. national defense e. Social Security
When a good is taxed, the tax revenue collected by the government equals the decrease in the welfare of buyers and sellers caused by the tax
a. True b. False Indicate whether the statement is true or false