All the land in a California valley is owned by one person. The supply of land is fixed and is rented each year to farmers who bid for it in an open auction. Given the rents they must pay, the farmers barely earn subsistence. Sympathy for the poor farmers leads the state to bring in irrigation facilities to raise the productivity of the farms and raise the farmers' income. The most likely outcome
is
a. the farmers will prosper.
b. the farmers and the landlord will share the new prosperity.
c. only the landlord will prosper.
d. no one will prosper.
c
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The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. If Priscilla chooses to eat 3 slices of pizza
A) she is maximizing her total utility. B) she is not equating marginal utility per dollar for pizza and Pepsi. C) she is not at a consumer equilibrium. D) Both answers B and C are correct.
If Macroland's first Prime Bank has deposits of $35,000 and makes the maximum possible loans of $50,000 allowed, then Macroland's legal reserve requirement must be 17.5 percent
Indicate whether the statement is true or false
The maximin criterion suggests that social policy should
a. expropriate the factors of production from the capitalist class. b. ensure an equal distribution of income. c. elevate the well-being of those at the bottom of the income distribution. d. elevate the well-being of all workers.
In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the United States?
A) The demand curve shifted to the right. B) The demand curve shifted to the left. C) The supply curve shifted to the right. D) The supply curve shifted to the left.