Meat at the supermarket has contributed to increase in food prices in 2010, and high feed and fuel prices mean that steak will likely cost a lot more this fall. The price of feed has increased 50 percent and hay has doubled from two years ago
Based on this information, which of the following is TRUE in the market for beef? A) Consumer surplus will decrease.
B) Producer surplus will increase.
C) Equilibrium price will decrease.
D) Equilibrium quantity will increase.
A
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The marginal product of a country's workers falls during winters due to excessive cold. Which of the following is likely to happen in this case, assuming all else equal?
A) The country's labor demand curve will shift to the right in winter. B) There will be an upward movement along the labor demand curve. C) The country's labor demand curve will shift to the left in winter. D) There will be a downward movement along the labor demand curve.
A unit tax
A) is based on the value of the good being sold. B) is a constant tax assessed on each unit of a good sold. C) is the primary tax studied in dynamic tax analysis. D) does not influence equilibrium price and quantity.
Which one of the following statements is not true? a. There is an opportunity cost associated with setting a money supply target. b. There is an opportunity cost associated with setting an interest rate target. c. When the Fed targets the money supply, the interest rate moves in an inappropriate direction.` d. The Fed targeted the money supply in the 1980s in order to bring inflation under
control. e. The Fed targeted interest rates in the late 1980s and 1990s in order to stimulate investment and aggregate demand.
A supply restriction that restricts the amount of a good that can be imported is a(n)
A. black market. B. import quota. C. white market. D. tariff.