In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the __________ and get a __________
a. price elasticity of demand; number less than 1
b. income elasticity; positive number
c. price elasticity; negative number
d. price elasticity of demand; number greater than 1
e. cross elasticity; positive number
E
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Real GDP per person equals average labor productivity:
A. times one minus the unemployment rate. B. times the share of population employed. C. times the labor force participation rate. D. minus the share of population employed.
The Coinage Act of 1792 set the relative values of silver and gold coins at 15 to 1 . Suppose the relative values of silver and gold in the market was 14 to 1 . In this case,
a. only silver would circulate as money. b. silver would be hoarded and sold abroad. c. silver would be overvalued at the mint. d. both gold and silver would circulate as money.
Managed funds
a. typically have a higher rate of return and higher costs than index funds. b. typically have a higher rate of return and lower costs than index funds. c. typically have a lower rate of return and higher costs than index funds. d. typically have a lower rate of return and lower costs than index funds.
In 2007, the U.S. economy was operating close to potential. The budget deficits experienced by the United States in 2007 was:
A. primarily cyclical deficits. B. primarily structural deficits. C. neither structural nor cyclical deficits. D. about evenly split between structural and cyclical deficits.