Discuss the benefits and opportunity costs of government farm subsidies.
What will be an ideal response?
Because farm prices are subject to such swings from high to low, our government, like many other countries, has tried to stabilize farm prices and thus farm incomes. These supports come at a price: consumers pay higher prices, government must store farm surpluses, and farm subsidies are a point of trade friction in international trade. In addition, these policies change the mix of output and waste scarce resources that could be used to produce other goods.
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Imports tend to fall whenever a nation's currency appreciates because foreign products become more expensive to domestic consumers
Indicate whether the statement is true or false
Total Revenue Product with six units of labor would be
A. $456.
B. $700.
C. $760.
D. $800.
If people act as if they systematically pursue their own self-interest, then they will most likely
A) respond irrationally to any incentive. B) respond to a given incentive in a random manner. C) respond predictably to a given incentive. D) not respond to any incentive.
What are the trade-offs involved in shortening the length of a patent for pharmaceuticals?
What will be an ideal response?