Refer to the diagram above, which shows three supply curves for corn. A movement from point a to point b is caused by a change in the:
a. Price of corn in the market
b. Number of corn farmers
c. Price of resources used to produce corn
d. Technology of corn farming
Ans: a. Price of corn in the market
You might also like to view...
The price system automatically leads to an efficient allocation of inputs among the different production processes.
Answer the following statement true (T) or false (F)
Some critics of antitrust are worried that some firms
a. will seek to increase competition to a dangerous level. b. will collude in order to avoid the laws. c. may use antitrust to prevent competition. d. may go out of business from large damage awards.
Which of the following is a reason why the measurement of GDP is not useful in the measurement of the standard of living of a country?
a. GDP includes what is spent on environmental protection and health care, but it does not include actual levels of environmental cleanliness and health. b. GDP includes the income of the non-residents of a country, and as a result does not reflect the actual income of the residents of the country. c. GDP includes the value of exports of a country, but it does not include the scarcity of goods and services within the country that is created due to exports. d. GDP includes many non-economic activities, but it ignores crucial economic activities like imports.
The state government requires all persons to pay 5% of their incomes in income tax.This is an example of:
a. The benefits principle b. a proportional tax c. a regressive tax d. a progressive tax