Acreage allotments, which limit the number of acres planted with a particular crop, has an effect on the crop's price which is:
A. Consistent with a price-support program
B. Contradictory to a price-support program
C. Consistent with a price-ceiling for the crop
D. Disadvantageous to the farmers of the crop
A. Consistent with a price-support program
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South Korea, Indonesia, Malaysia, and Thailand all pegged their currencies to the dollar at one point in time
Because some of these currencies were overvalued at the pegged rate, speculators anticipated these countries would abandon the peg and speculators began selling those currencies. Explain how this speculation would affect the ability of a country to maintain a pegged exchange rate.
If companies who took into account an externality want to supply less at any given price compared to the original market supply, it must be a:
A. positive externality. B. negative externality. C. network externality. D. social externality.
Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project has the shortest payback period?
A. Project A
B. Project B
C. Project C
D. It cannot be determined from the information given.
The two "goods" used when economists analyze labor supply are
a. work and leisure. b. work and consumption. c. saving and consumption. d. leisure and consumption.