Which of the following statements is correct?
A. The price support program hastened the exodus of resources from agriculture.
B. The main beneficiaries of government price support assistance were the very low-income
farmers.
C. If the demand for agricultural products is inelastic, a relatively small decrease in supply will
increase gross farm incomes.
D. There is a misallocation of resources in rural America because of absolute and relative
increases in the size of the farm population.
Answer: C
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The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require
A. higher consumption in the future in order to increase imports. B. lower consumption in the future in order to repay interest and principal to foreigners. C. lower consumption in the future in order to finance increased investment. D. higher budget deficits in the future in order to increase the trade surplus.
Something other than exploiting cheap foreign labor must be driving international trade
a. True b. False Indicate whether the statement is true or false
A bank has a reserve requirement of 0.08. If it has demand deposits of $200,000 and is holding $4,000 in reserves:
A. the bank is not meeting its reserve requirement. B. all the bank's reserves are excess reserves. C. the bank is holding $2,000 in excess reserves. D. the bank could extend additional loans and still meet its reserve requirement.
The age of mass consumption truly began around
A. 1860. B. 1890. C. 1920. D. 1950.