Given a change in food prices, farmers are typically able to respond rapidly with a change in output.
Answer the following statement true (T) or false (F)
False
The agricultural supply response to a change in prices is always one harvest later; therefore the response is relatively slow.
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Unemployment is a ________ concept, measuring the ________
A) stock; number of people who are not working B) stock; number of people at a point in time who are not working but who are looking for work C) flow; number of people who are first entering the labor force D) flow; number of people who lost their jobs within the last week
The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is called
a. producer surplus b. the substitution effect c. price discrimination d. the income effect e. consumer surplus
From 2002 to 2003, personal income rose by $352 billion. If the MPC = 0.9, then personal consumption expenditures rose by
a. $31.68 billion b. $35.2 billion c. $3.52 billion d. $387.2 billion e. $316.8 billion
Because natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would
a. cause the monopolist to operate at a loss. b. result in a less than optimal total surplus. c. maximize producer surplus. d. result in higher profits for the monopoly.