An optimum that occurs as a corner solution
A) includes only one good.
B) cannot be an equilibrium.
C) cannot exhaust the budget constraint.
D) includes the exact same amounts of each good.
A
You might also like to view...
Since 1950, it can be observed that the female participation rate in our labor force has
A) increased. B) decreased. C) stayed constant. D) moved erratically up and down.
If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then the income elasticity of demand for housing is
A. -1. B. -0.7. C. 0.7. D. 1.43.
Using trade restrictions to protect special interests such as the U.S. auto industry
A) results in lower prices for U.S. auto consumers. B) raises the prices that U.S. consumers must pay for autos. C) is a very cost-efficient way of dealing with trade problems. D) is the best long-term solution for threatened U.S. jobs.
Which of the following is an example of a forward contract?
A. A farmer near Ames and a local ethanol plant agree on a price and quantity of corn to be delivered later today. B. A farmer near Ames and Key Co-Op agree on a price and quantity of corn to be delivered 6 months from now. C. A farmer near Ames goes short on a futures contract. D. A farmer in Ames sells corn to a Canadian firm.