Relating to the Economics in Practice on page 253: Ethanol subsidies have increased the supply of corn, and ethanol is a fuel produced from corn. As a result, ________ farm land has increased. Further, supply of ________ has decreased.
A. supply of; corn
B. demand for; other grains
C. supply of; other grains
D. demand for; corn
Answer: B
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Which of the following is likely to cause the demand curve for cars to shift to the left?
A) A rise in the price of gasoline B) A rise in the price of cars C) An increase in the economy's national income D) An increase in the cost of production leading to an increase in the price of cars
An example of an underemployed resource is a(n)
a. farmer in Illinois who plants corn instead of wheat b. auto mechanic who is laid off from his job c. welfare recipient who doesn't work d. retired senior citizen who doesn't work e. person with a Ph.D. in chemistry who drives a taxi as a full-time job
Since World War II, international exchange rates have been
a. fixed all the time. b. floating all the time. c. fixed most of the time until the early 1970's, and floating most of the time since then. d. determined by the use of exchange controls.
These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown, area B represents:
A. deadweight loss. B. producer surplus. C. profits earned in the short run. D. consumer surplus.