Tom Searchinger, a senior attorney at the Environmental Defense Fund, observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat. How does this affect the market for fertilizer?
A) The supply of fertilizer increases. B) The demand for fertilizer increases.
C) The supply of fertilizer decreases. D) The demand for fertilizer decreases.
B
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What determines the demand for loanable funds and what makes it change?
What will be an ideal response?
Suppose the Fed is targeting real GDP. If the interest rate is below its forecast and the Fed is convinced that this is due to commodity demand instability, it will ________ the money supply, which turns out to be exactly the wrong thing to do if the
low interest rate is in fact due to ________ money demand. A) raise, high B) raise, low C) lower, high D) lower, low
Because government bodies have the power to make up for inadequate supply of a good:
A. its presence as a producer is in virtually every market. B. it can be efficiency enhancing in markets for public goods. C. they have incentive to compete with local businesses. D. None of these statements is true.
A firm experiencing economic losses could be earning accounting profits: a. If implicit costs are greater than zero. b. If implicit costs are equal to zero
c. If implicit costs are less than zero. d. In none of the above scenarios.