Hydraulic fracturing has unleashed a large supply of natural gas in the U.S., leading to large decreases in natural gas prices and therefore fertilizer (an important input in corn production) costs. What is the impact of the hydraulic fracturing revolution on the market for corn markets?
A. A shift to the right of the derived demand curve and an increase in the price of corn.
B. A shift to the left of the supply curve and an increase in the price of corn.
C. A shift to the left of the derived demand curve and a decrease in the price corn.
D. A shift to the right of the supply curve and a decrease in the price of corn.
Answer: D. A shift to the right of the supply curve and a decrease in the price of corn.
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A benefit from an increase in activity is called the
A) marginal benefit. B) economic benefit. C) total benefit. D) opportunity benefit.
Wants
A) is another term for needs. B) refer to services while needs refer to goods. C) is the term used by economists instead of needs because needs are not objectively definable. D) are used by economists and refer to the same thing as needs when used by psychologists.
An increase in the U.S. cattle herd in Texas because of favorable market conditions will
A. shift the supply curve of US corn to the right. B. shift the supply curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the demand curve for US corn to the left.
In 2009, the United States gross saving rate was about _______ percent of the United States gross national income.
A. less the zero B. about twenty C. about five D. just over ten