Refer to Figure 8.8. If the market price of soybeans falls to $8, then to maximize profits this farmer should produce
A) 200 bushels of soybeans.
B) 700 bushels of soybeans.
C) 1,000 bushels of soybeans.
D) a level of output that is indeterminate from this information.
B) 700 bushels of soybeans.
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Which of the following is not a component of the aggregate demand curve?
a. Consumption (C). b. Investment (I). c. Government spending (G). d. Net exports (X-M). e. All of these are components.
Suppose the reserve ratio is RR. Then,
A) required reserves = RR × excess reserves. B) required reserves = RR × loans. C) required reserves = RR × deposits. D) required reserves = RR × actual reserves.
A simple model used in your textbook to show how an economy works is the
a. renewable resources model b. normative economic model c. insatiable wants model d. econometric model e. circular flow model
A person's subjective measure of well-being or satisfaction is called aversion
a. True b. False Indicate whether the statement is true or false