If corn is an input into the production of ethanol, will a decrease in the price of corn increase the supply of ethanol or decrease the supply of ethanol?
The supply of ethanol will increase.
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Traditional economists base their models of human behavior on simplifying assumptions regarding rationality and decision making
a. True b. False Indicate whether the statement is true or false
Which of the following transactions would be included in service imports in the U.S. balance of payments?
a. A Chinese exporter sells toys to a toy retailer in the United States. b. An American firm pays a Danish shipping company to transport products to Europe. c. A European purchases a bond from the U.S. Treasury Department. d. A U.S. resident buys a plane ticket from American Airlines for future travel to Mexico.
If price is above the equilibrium price, then there will be:
A. excess supply. B. neither excess supply nor excess demand. C. excess demand. D. both excess supply and excess demand.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.