Suppose the government has imposed a price floor on the market for soybeans. Which of the following events could transform the price floor from one that is not binding into one that is binding?
a. Farmers use improved, draught-resistant seeds, which lowers the cost of growing soybeans.
b. The number of farmers selling soybeans decreases.
c. Consumers' income increases, and soybeans are a normal good.
d. The number of consumers buying soybeans increases.
a
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Owners of small firms in countries with weak banking systems have to rely on funds from all of the following EXCEPT:
A) their own savings B) local lenders who charge high interest rates C) global investors D) the savings of relatives and friends
Table 7-5 Stereos produced 0 1 2 3 4 5 6 Total cost (in $) 200 325 410 475 550 660 825 Table 7-5 shows short-run total cost figures for a stereo manufacturer. The manufacturer’s short-run fixed cost is
A. 0. B. $75. C. $200. D. $400.
Which of the following is NOT a reason for average costs to fall according to the learning curve?
A) Workers accomplish tasks more quickly after doing the task a few times. B) Managers schedule more efficiently over time. C) Engineers determine more accurately what tolerances can be used. D) Suppliers may become better able to produce the exact inputs the firm needs. E) Competing firms leave the industry as the learning firm becomes more efficient.
The ultimate purpose of an economic model is to
a. explain reality as completely as possible b. establish assumptions that closely resemble reality c. help us understand economic behavior d. determine what each decision maker wants to maximize e. guide government policy decisions