Ceteris paribus, if the subsidies given to corn syrup producers decrease, then we can expect
A. A decrease in the supply of corn syrup.
B. A decrease in the demand for corn syrup.
C. An increase in the supply of corn syrup.
D. An increase in the demand for corn syrup.
Answer: A
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Starting from long-run equilibrium, the long-run impact of a war that raises government purchases, compared to the original equilibrium, is:
A. higher inflation and higher output. B. lower inflation and the same output. C. lower inflation and lower output. D. higher inflation and the same output.
Refer to Figure 2-6. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A) 60 thousand spoons B) 46 thousand forks C) 16 thousand spoons D) 12 thousand forks
If all used cars in a market with symmetric information about quality are sold at the same price, then
A) sellers of good quality cars are subsidizing sellers of lemons. B) buyers of good quality cars are subsidizing buyers of lemons. C) sellers of lemons are subsidizing sellers of good quality cars. D) sellers of good quality cars are subsidizing buyers of lemons.
Which of the following rates of growth in the money supply is likely to lead to the lowest level of inflation in the economy?
a. 1 percent per year b. 3 percent per year c. 5 percent per year d. 7 percent per year