Last year, Casey grew fresh vegetables, which she sold at her local farmers market, but this year, Casey did not plant any vegetables and went to work at a bank instead. If Casey's decision to change careers did not affect the price of vegetables at the farmers market, then this suggests that:
A. the market demand for vegetables is perfectly inelastic.
B. the demand for vegetables increased this year.
C. the demand for vegetables did not change.
D. the market for vegetables is perfectly competitive.
Answer: D
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Describe the behavior of the unemployment rate from the early 1990's to the present.
What will be an ideal response?
Consider the following statements about the signaling hypothesis of education:
A. The signaling hypothesis of education is based on the idea that college graduates are more productive than non-college graduates. B. The signaling hypothesis of education suggests that firms rely on human capital requirements to ensure worker quality. C. Employers rely on certain signals, such as a college diploma to gauge a potential employee's abilities because it could lower the cost of acquiring information about the person that is not easily observed. Which of the statements above is true about the signaling hypothesis of education?
Which of the following examples shows Adam Smith’s “invisible hand”?
a. Millions of people through buying and selling adjust how resources such as steel are used. b. The Federal Trade Commission uses consumer protection laws to adjust resource allocation. c. The five largest banks adjust loan interest rates, which affect the free market. d. Five countries form a trade agreement that spurs the economy in each country.
Business cycles in the United States
A. Are similar in frequency and intensity. B. Are remarkably similar in length but vary greatly in intensity. C. Are similar in length, frequency, and intensity. D. Vary greatly in length, frequency, and intensity.