If goods X and Y are complements, then the cross price elasticity of demand between them will be
a. positive.
b. negative.
c. zero.
d. infinity.
QUESTION 2The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good
b. unbundling regulated and unregulated goods
c. preventing the exclusion of rival unregulated goods
d. exploiting differences in tax rates across jurisdictions
QUESTION 3Annual deaths from medical issues related to tobacco use are approximately
a. 100,000
b. 220,000
c. 330,00
d. 440,000
e. 550,000
QUESTION 4The price elasticity of demand for any good must be less than or equal to zero unless
a. the good is a necessity.
b. the good is a luxury.
c. the good is a Giffen good.
QUESTION 5The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good
b. unbundling regulated and unregulated goods
c. excluding sellers of competing unregulated goods
d. insuring tax rates are uniform across jurisdictions
QUESTION 6The U.S. has a higher infant mortality rate than other developed countries. This is most likely a result of
a. poor medical care.
b. poverty.
c. poor access to medical care.
d. the cause or causes are unknown.
e. both b and c are true.
QUESTION 7If a consumer purchases only two goods (X and Y ) and the demand for X is elastic, then a rise in the price of X
a. will cause total spending on good Y to rise.
b. will cause total spending on good Y to fall.
c. will cause total spending on good Y to remain unchanged.
d. will have an indeterminate effect on total spending on good Y.
QUESTION 8The various ways that vertical relationships can evade regulation include
a. tying the sale of a regulated good to a customer's choice of an unregulated good
b. bundling regulated and unregulated goods
c. preventing the exclusion of rival unregulated goods
d. insuring tax rates are uniform across jurisdictions
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