Referring to Figure 2.1, if you increase the production of agricultural goods, what other area is affected?

A. the price of produce
B. the production of manufactured goods
C. how much people can purchase
D. the wages earned by agricultural workers


Answer: B

Economics

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When the Fed buys government bonds on the open market,

A. the market rate of interest on government bonds are lowered AND the market rate of interest on corporate bonds are lowered. B. the market rate of interest on corporate bonds are increased. C. government yields drop but corporate yields rise. D. government and corporate yields rise.

Economics

Referring to the previous question, as a result of the consumer's adjustment to the change in the price of Y, assuming Y is a normal good and X and Y are complements, it is reasonable to expect that the amount of Y consumed will ________, and the

amount of X consumed will ________: A) increase; decrease B) decrease; decrease C) increase; increase D) cannot be determined; cannot be determined

Economics

The present value of receiving $200 one year from now when the prevailing rate of interest is 8 percent is

a. $192 b. $185.19 c. $200 d. $208 e. $160

Economics

All of the following conditions, except one, must exist in order for a firm to successfully practice price discrimination. Which is the exception?

a. The firm must be a price taker. b. The firm must be able to identify which customers are willing to pay more. c. The firm must be able to prevent the resale of its output by low-price customers to high-price customers. d. The firm must be able to charge higher prices to some customers without losing their business. e. The firm must be a price setter.

Economics