Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the
a. demand for flour to increase.
b. demand for flour to decrease.
c. supply of flour to increase.
d. supply of flour to decrease.
c
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Jane is a 25 year old, full-time student. She works part time in her school library and is paid $7 an hour. She is considered to be
A) not in labor force. B) not in the working-age population because she is in college. C) employed. D) unemployed. E) in labor force but not working.
If the Fed wanted to prevent a change in money demand from affecting real GDP, which of the following responses would it choose?
a. A neutralization response b. A constant interest rate response c. A constant money supply response d. A constant tax rate response e. A constant government spending response
If Lisa spends her income on veggie burgers and pints of soy milk and the price of veggie burgers is three times the price of a pint of soy milk, then when Lisa maximizes her utility she will buy
A) both goods until the marginal utility of veggie burgers is three times the marginal utility of soy milk. B) three times as many veggie burgers as pints of soy milk. C) three times as many pints of soy milk as veggie burgers. D) both goods until the marginal utility of a pint of soy milk is three times the marginal utility of veggie burgers.
Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Donnie's Donuts?
A) $150,000 B) $350,000 C) $600,000 D) $1.2 million