Which of the following is an example of explicit costs of production on a dairy farm?
a. payments made for cattle feed and veterinary services
b. payments received from customers for milk and cheese
c. amounts lost by not leasing out the farm’s grazing fields
d. the salary the farmer could have earned working in town instead
a. payments made for cattle feed and veterinary services
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Refer to Figure 17-9. A supply shock, such as rising oil prices, would be depicted as a movement from
A) C to B to A. B) C to D to A. C) A to B to C. D) A to D to C. E) C to E to B.
If the aggregate price level adjusts slowly over time, then an expansionary monetary policy lowers
A) only the short-term nominal interest rate. B) only the short-term real interest rate. C) both the short-term nominal and real interest rates. D) the short-term nominal, the short-term real, and the long-term real interest rates.
An example of a firm with market power is a
a. delicatessen in New York. b. cable TV provider in Tulsa. c. clothing store in Chicago. d. family farm in Kansas.
Which of the following statement is false based on information presented in the textbook?
A) There is evidence of a shortage in the market for kidneys (for transplants). B) The waiting list for transplanted kidneys is used as a non-price rationing device. C) There is a price ceiling in the market for transplanted kidneys at a price of $0. D) In the market for transplanted kidneys the legal price is the same as the equilibrium price. E) ?It is currently unlawful to buy or sell kidneys at any positive price.