Explain the role of risk and uncertainty in an analysis of the economic behavior of peasant farmers. What kinds of questions does this analysis enable us to answer?
What will be an ideal response?
Answers may be expected to vary according to lecture topics, with some discussion of why peasant production decisions are rational. See the section in the text that discusses sharecropping.
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Taxing buyers rather than sellers increases the market equilibrium price
a. True b. False Indicate whether the statement is true or false
Which of the following will cause the demand curve for product A to shift to the left?
A. Population growth that causes an expansion in the number of persons consuming A. B. An increase in money income if A is a normal good. C. A decrease in the price of complementary product C. D. An increase in money income if A is an inferior good.
According to the No Marginal Improvement Principle, if X* is the best choice, then:
A. MB must be no greater than MC at X* or else a small increase in the activity would increase net benefits. B. MB must be no greater than MC at X* or else a small decrease in the activity would increase net benefits. C. MB must be no less than MC at X* or else a small increase in the activity would increase net benefits. D. the difference between MB and MC must be as great as possible.
If the unemployment rate rose from 6 percent to 7 percent,
A. Cyclical unemployment went up by more than 1 percent. B. Cyclical unemployment went up by 1 percent. C. Cyclical unemployment went up by less than 1 percent. D. Cyclical unemployment stayed the same. E. Cyclical unemployment went down.