Consider four parcels of peanut growing land. The nonland peanut production costs are $1,000 for Parcel A, $1,200 for Parcel B, $1,600 for Parcel C, and $1,700 for Parcel D. If, before rents are charged, farmers are indifferent between planting on Parcel, then which of the following is true?
A. Parcel A’s rent is $200 and Parcel C’s rent $0.
B. Parcel A’s rent is $200 and Parcel B’s rent $400.
C. Parcel A’s rent is $600 and Parcel B’s rent $300.
D. Parcel A’s rent is $600 and Parcel D’s rent $0.
Answer: D
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Which of the following board of governors are responsible for setting and implementing the nation's monetary policy?
a. The Board of Governors, which consists of five members appointed by the Fed and confirmed by the Senate. b. The Board of Governors, which consists of seven members appointed by the president and confirmed by the Senate. c. The Board of Governors, which consists of four members appointed by the Senate and confirmed by the Fed. d. The Board of Governors, which consists of three members appointed by the president and confirmed by the Fed.
Relative to developed economies, budget deficits are:
A. equally likely developing economies. B. politically less acceptable in developing countries. C. more likely in developing economies. D. less likely in developing economies.
If a good is considered a normal good, the demand curve will shift ________ when income increases because ________
A) right; the income and substitution effects move in the same direction. B) right; the income and substitution effects move in the opposite direction. C) left; the income and substitution effects move in the same direction. D) left; the income and substitution effects move in the opposite direction.
How did the consolidated balance sheet of the 12 Federal Reserve banks change during the severe recession of 2007–2009?
What will be an ideal response?