In arriving at the quantity of output and price of its product, a company
a. chooses either output or price, and consumer demand determines the other.
b. has no control over either quantity or price.
c. makes two decisions by setting both optimal output and optimal price.
d. generally leaves both quantity and price decisions to consumers.
a
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Currently, virtually the entire deficit in the U.S. is
a. cyclical. b. structural. c. transitional. d. frictional.
During the period of rapid industrialization in the U.S. after the Civil War,
(a) real farm incomes fell drastically. (b) real incomes in the agricultural sector increased at a faster pace than real incomes in manufacturing. (c) real incomes in the agricultural sector increased at relatively the same rate as real incomes in manufacturing. (d) real incomes in the agricultural sector increased but at a slower pace than real incomes in manufacturing.
Who was one of the first proponents of employing market economies instead of command economies?
a. Robert Heilbroner. b. Karl Marx. c. Jeffrey Sachs. d. Adam Smith.
Assume that the market for barley is in equilibrium and the demand for barley is inelastic. Predict what happens to the revenue of barley farmers if a prolonged drought reduces the supply of barley. The drought will cause farm revenue to
A) rise because there will be a shortage of barley. B) rise because the percentage decrease in quantity sold is less than the percentage increase in price. C) rise because the percentage increase in quantity sold is greater than the percentage increase in price. D) fall because of the decrease in the quantity of barley sold.