When the price of pens went from $1 to $1.50, the quantity demanded of pencils changed from 50 to 75 a day. The cross-price elasticity of demand for pencils (using the initial value formula) is:
A. 1.
B. 0.4.
C. 0.2.
D. -0.2.
Answer: A
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Match each of the following jobs to its major area: forecasting, analysis, research, or data development. Explain your answers
(a) Economist at university, testing theories about the efficient allocation of resources in the foreign exchange market (b) Economist at Wall Street firm trying to predict the rate of inflation next year using past data (c) Economist at auto firm looking at demand for new automobiles (d) Economist at the International Trade Commission trying to determine whether foreign firms are dumping goods in the United States (e) Economist at the Commerce Department developing new methods for calculating price indexes (f) Economist consulting in Eastern Europe about how to set up free-market financial systems
Ownership of a corporation is divided into shares that are claims on the firm's __________ and these shares are also referred to as ____________
a. assets and liabilities; bonds b. assets and liabilities; stocks c. liabilities and earnings; stocks d. assets and earnings; stocks e. assets and earnings; bonds
If the price of one input changes, generally the firm will change its use of both inputs
a. True b. False Indicate whether the statement is true or false
If three employees each work 35 hours a week and produce a total of 9,765 items, what is their total hourly productivity level?
A. 31 B. 93 C. 67 D. 105