The cross-price elasticity of two goods is 2. This tells us the two goods are:

Comparing changes in relative prices is more useful than examining average prices in

A. Deflating nominal income. B. Determining the redistribution of income. C. Determining if there is deflation. D. Determining the inflation rate.

An example of a government policy to provide a framework within which the private sector can operate productively is:

A. government ownership of capital. B. the suppression of political dissent. C. the taxation of savings. D. establishing well-defined property rights.