If the equilibrium price of corn is $3 a bushel and the government imposes a floor of $4 a bushel, the price of corn will _______________________.
A. Increase to $4
B. Remain at $3
C. Rise to about $3.50
D. Be impossible to determine
A. Increase to $4
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Just as indifference maps represent consumer tastes, so isoquant maps represent a producer tastes.
Answer the following statement true (T) or false (F)
Economists who are concerned with the effect of fiscal policy on the ability of households and firms to borrow to finance consumption will focus on ________, and economists who want to know whether the government's fiscal policy is sustainable will
focus on ________. A) yearly budget deficits; the federal debt B) the federal debt; yearly budget deficits C) yearly budget deficits; both the federal debt and yearly budget deficits D) the federal debt; both the federal debt and yearly budget deficits
The equimarginal principle illustrates:
a. that consumers are essentially robots. b. that people behave irrationally. c. that people behave in rather consistent ways in order to maximize happiness. d. that people behave in rather inconsistent ways. e. that people will spend all their incomes.
Inflation rates above 10 percent occur
A. During wartime periods. B. Rarely in the United States. C. In most countries today. D. None of the other choices.