If the cross elasticity between two goods, X and Y, is positive, then we know they are
a. substitute goods
b. complementary goods
c. unrelated goods
d. inferior goods
e. normal goods
A
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Refer to Table 2-7. Which of the following statements is true?
A) Minnie has an absolute advantage in making umbrellas and Mickey in making hats. B) Minnie has an absolute advantage in making both products. C) Minnie has an absolute advantage in making hats and Mickey in making umbrellas. D) Mickey has an absolute advantage in making both products.
What is the relation between the unemployment rate and the proportion of unemployed workers who have been unemployed for 15 weeks or longer?
A) Both rise in recessions. B) Both rise in expansions. C) The unemployment rises in recessions but the proportion of unemployed workers who have been unemployed for 15 weeks or longer declines in recessions. D) The unemployment falls in recessions but the proportion of unemployed workers who have been unemployed for 15 weeks or longer rises in recessions.