An economist estimated the cross-price elasticity for peanut butter and jelly to be -1.5 . Based on this information, we know the goods are
a. inferior goods.
b. complements.
c. inelastic
d. substitutes.
b
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The Ricardian notion that of diminishing returns implies that
a. as more input is used more output will be made. b. as more input is used less output will be made. c. as more input is used the increase in output will increase. d. as more input is used the increase in output will decrease.
When constructing an overall measure that shows inflation in the prices of many different items, economists consider: a. the average of the price changes of all goods
b. the total cost of purchasing a basket of goods and services. c. the changes in the prices of only luxury goods. d. the changes in the prices of only nondurable goods.
If M = $5,000, P = $20, and Q = 2,000, then V is
A) 2.0. B) 4.0. C) 5.0 D) 6.0 E) 8.0
The marginal physical product of labor is
A) the output of the firm divided by the number of workers. B) the change in total revenues resulting from the addition of one more worker, while increasing one other factor of production. C) the change in output resulting from the addition of one more worker, holding other factors of production constant. D) the change in output resulting from the addition of one more worker, adjusting the level of the capital stock accordingly.