If a farmer rents the land he works on, then any price support or deficiency payments he receives __________ capitalized into the value of that land, and so his economic profit from farming __________
A) are; goes to zero
B) are; remains positive
C) are not; goes to zero
D) are not; remains positive
A
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An upper limit to the quantity of a good that may be produced in a specific period is called
A) production quota B) import quota C) price ceiling D) price floor
In which of the following periods did average labor productivity in the United States grow the fastest?
A) 1929 to 1935 B) 1949 to 1973 C) 1973 to 1995 D) 1995 to 2008
In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____
a. minimize their effort b. extract all the legislature's consumer surplus from the bureau's output c. maximize the bureau's profits d. maximize the budget's producer surplus by extracting from the legislature large rents
Suppose the U.S. money supply increases from $7.6 trillion to $8.3 trillion. If there is zero real economic growth, and velocity stays constant, then according to the quantity theory of money, the U.S. inflation rate during this period would be:
A. 6 percent. B. 3 percent. C. 9 percent. D. 12 percent.