A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this
A. will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall.
B. will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease.
C. will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall.
D. will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase.
Answer: D
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A recent study has revealed that the consumption of coffee is injurious to health. This led to a sharp decline in coffee consumption worldwide. If coffee production accounts for 40% of Richland's GDP, this will lead to a(n)________
A) rise in Richland's inflation rate B) increase in the real interest rate in Richland C) rise in Richland's demand for labor D) fall in Richland's demand for labor
In order for a Pigouvian subsidy to be efficient, the amount it costs the government to implement the subsidy must be less than the economic value of the additional externality benefits created by the subsidy.
Answer the following statement true (T) or false (F)
When the Federal Reserve increases the money supply, it has the immediate effect of creating wealth
a. True b. False
Which economist believes all profits are derived from the exploitation of workers?
A. Frank Knight B. Joseph Schumpeter C. Karl Marx D. John Maynard Keynes