Suppose that the number of units of good X consumed falls 12 percent when the price of good Y falls 8 percent. The cross price elasticity of demand between goods X and Y is
A) 0.66.
B) 1.75.
C) 2.0.
D) 1.5.
D
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Which of the following represents a perfectly competitive farmer's demand curve for hired hands?
a. her ATC curve b. her AVC curve c. her MRP curve d. her MRC curve e. her AFC curve
Assume that a British investor buys a one-year U.S. Treasury bill that pays 6 percent annual interest. Given a yield of 4 percent on a comparable British Treasury bill, the U.S. dollar must depreciate 2 percent against the British pound during the year for interest rate parity to hold
a. True b. False Indicate whether the statement is true or false
The supply curve of books (which are produced using paper made from trees) will shift to the left in response to: a. a decline in college tuition
b. a sharp increase in the demand for and construction of wood-frame homes. c. an increase in the supply of lumberjacks. d. an end to government regulations that limit timber harvesting in national forests.
Keynesian economists generally agree that unemployment is more costly than inflation.
Answer the following statement true (T) or false (F)