Explain how agricultural price supports work and what the effects of the supports are
What will be an ideal response?
Under agricultural price supports, the government sets the price of an agricultural product above the equilibrium price. Consequently, there is an excess quantity of the product supplied. To keep the price at the floor level, the government must buy the surplus. Hence, consumers pay higher prices for the product, and taxpayers pay higher taxes to fund the government's purchases of the product.
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When your income increases
A) your budget line shifts rightward and its slope does not change. B) your budget line shifts leftward and its slope does not change. C) the slope of your budget line increases. D) the slope of your budget line decreases.
Consider a manufacturing operation that uses specialized machinery and labor to produce its output. In this case, the input that is not fixed in the short run is labor
Indicate whether the statement is true or false
If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase, allowing businesses to cut back production.
In contrast to richer countries, most residents of poorer nations will have
A. only some primary education. B. primary and secondary education. C. higher education. D. higher levels of productivity.