The cross-price elasticity of two goods is -2. This tells us the two goods are:
A. complements.
B. substitutes.
C. inelastic.
D. unrelated.
Answer: A
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Unemployment is a ________ concept, measuring the ________
A) stock; number of people who are not working B) stock; number of people at a point in time who are not working but who are looking for work C) flow; number of people who are first entering the labor force D) flow; number of people who lost their jobs within the last week
Over the last 80 years, the average annual U.S. inflation rate was about
a. 3.6 percent, implying that prices have increased 16-fold. b. 4 percent, implying that prices have increased 17-fold. c. 4 percent, implying that prices have increased 16-fold. d. 3.6 percent, implying that prices increased about 17-fold.
The practice of charging customers different prices for the same good is called:
A. price marking. B. customer discrimination. C. group discounting. D. price discrimination.
A reduction in which of the following variables will cause an increase in the amount of money individuals wish to hold in the current period?
A) current income B) the current nominal interest rate C) the current real interest rate D) expected future income E) all of the above