Why would irrigated farming not become more profitable if the federal government lowered the price farmers had to pay for irrigation water?
A) Farmers would have to pay more for electricity to pump the water.
B) The cost of owning or renting land that could be irrigated would rise.
C) The prices of irrigated crops would not rise.
D) Water is a marginal cost in farming.
E) Water is a sunk cost in farming.
B
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Hedge funds ________
A) acquire access to funds by accepting deposits then using these monies to lend to households and firms B) raise funds by selling commercial paper then lend these funds to consumers C) acquire access to monies through the payment of premiums by employees D) are a special type of mutual fund
People of Moifo, a small island country, use oranges in exchange for various goods and services. If all the oranges are of uniform quality, which of the following is likely to cause a collapse of the orange currency in Moifo? a. Oranges cannot serve as a medium of exchange. b. Oranges cannot serve as a unit of account
c. Oranges cannot store value. d. Oranges are not grown in the territory of Moifo.
The real rate of interest is the
a. money rate of interest plus the inflationary premium. b. money rate of interest minus the inflationary premium. c. yield one can expect to receive on loanable funds without taking significant risk. d. risk component associated with the ownership of real assets.
The natural rate of unemployment
a. is constant over time. b. varies over time, but can't be changed by the government. c. is the unemployment rate that the economy tends to move to in the long run. d. depends on the rate at which the Fed increases the money supply.