Government subsidies on the purchase of fertilizer by farmers result in
A. No change to fixed or variable costs.
B. Lower costs of production and increased output.
C. Higher fixed costs to farmers.
D. Decreased output because variable costs are higher.
Answer: B
You might also like to view...
Which of these goods may be considered rivalrous in consumption and nonexcludable?
A. wilderness areas B. national defense C. broadcast television reception D. fire insurance
Over the period between 1960 and 2010, the increase in unemployment rate was the greatest in
A) early 1960s. B) late 2000s. C) mid 1970s. D) early 1980s. E) early 1990s.
Assume that the M1 multiplier is 3.0 and the monetary base is $200 billion. If M1 is currently equal to $600 billion and the Federal Reserve wishes to raise the level to $690 billion, the monetary base should be expanded by
A) $60 billion. B) $30 billion. C) $20 billion. D) $10 billion.
What conditions should be met to practice price discrimination in a market?