One reason for the year-to-year instability of agricultural product demand is the:
A. High price-elasticity for agricultural products
B. Fluctuations in weather patterns
C. Declining role of technological progress in agriculture
D. Greater dependence on exports to foreign markets
D. Greater dependence on exports to foreign markets
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When a firm's long-run average cost is constant as output increases, the firm is experiencing constant returns to scale
Indicate whether the statement is true or false
Current account deficits are offset by
A) the liquidity balances. B) capital account surpluses. C) the basic balance. D) balance of trade surpluses.
The merchandise trade balance equals:
a. balance of payments – depreciation b. assets – liabilities c. merchandise exports – merchandise imports d. trade surplus – trade deficit
Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
A. The law of diminishing marginal utility. B. The law of diminishing returns. C. Return equalization principle. D. The principal-agent problem.