Beef is a normal good and people's incomes fall. At the same time a bumper corn crop reduces the cost of feeding steers. These changes result in
A) an increase in the equilibrium quantity of beef.
B) an increase in the equilibrium quantity of beef if the shift in the demand curve is smaller than the shift in the supply curve.
C) an increase in the equilibrium quantity of beef if the shift in the demand curve is larger than the shift in the supply curve.
D) no change in the equilibrium quantity of beef.
B
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Among developed countries, the United States has
A) one of the lower Gini coefficients. B) one of the higher Gini coefficients. C) the most unequal distribution of income. D) an income distribution right about at the median of those countries.
Which feature of the business cycle does the one-period model replicate with shocks to government expenditures?
A) procyclical employment B) procyclical consumption C) procyclical real wages D) countercyclical prices
If trade is mutually beneficial, then increasing trade
A. Increases the welfare of producers that compete with importers. B. Reduces income for workers in export industries. C. Makes countries less interdependent. D. Leads to increased output in export industries.
The difference between the government debt and the budget deficit is...
What will be an ideal response?