Intergovernmental competition obscures citizen preferences for public sector output

If automobiles and gasoline are complements, then their cross-elasticity coefficient will be:

a. strictly greater than one. b. positive. c. equal to zero. d. negative.

Suppose workers notice a fall in their nominal wage but are slow to notice that the price of things they consume have fallen by the same percentage. They may infer that the reward to working is

a. temporarily low and so supply a smaller quantity of labor. b. temporarily low and so supply a larger quantity of labor. c. temporarily high and so supply a smaller quantity of labor. d. temporarily high and so supply a larger quantity of labor.