The cross-price elasticity of demand between bread and potatoes is estimated to be 0.5. This implies bread and potatoes are:

A. normal goods.
B. complements.
C. substitutes.
D. unrelated.

Answer: C

Economics

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The income of managers is often ____ diversified compared to the income of stockholders

A) more easily B) equally easily C) less easily D) smaller

Economics

Those who desire that policymakers stabilize the economy would advocate which of the following when aggregate demand is insufficient to ensure full employment?

a. decrease the money supply b. increase taxes c. increase government expenditures d. Do nothing and let markets correct themselves.

Economics