The cross-price elasticity of demand for peanut butter and jelly is likely:
A. a negative number.
B. less than one.
C. a positive number.
D. a very high positive number.
Answer: A
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Suppose that the elasticity of demand for newspapers is 2.0 and quantity demanded decreases by 40%. What must the percentage increase in price have been?
A. 2% B. 20% C. 80% D. 200%
When the policy rate decreases,
A) IS curve does not change. B) IS curve shifts to the right. C) IS curve shifts to the left. D) LM curve shifts upward. E) LM curve shifts downward.
When there is an increase in the duration of unemployment, the U.S. Congress typically responds by
A. lowering income taxes. B. extending unemployment benefits. C. redefining "unemployed" so the unemployment rate does not look so bad. D. encouraging unemployed U.S. workers to seek employment overseas.
An automobile manufacturing plant is likely to have a ______________ price elasticity of supply than a bread bakery due to _________________.
A. more elastic; a more flexible production process B. more elastic; greater availability of inputs C. less elastic; a less flexible production process D. more elastic; lower availability of inputs