A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ________ and the quantity of corn ________
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) falls; does not change
C) falls; increases
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When the aggregate demand curve shifts rightward, the price level ________ and the unemployment rate ________
A) decreases; increases B) decreases; decreases C) increases; decreases D) does not change; does not change E) increases; increases
What might happen to alligators in the south if the U.S. Fish and Wildlife Service were to reduce or eliminate the tags required to hunt alligators?
A. Over consumption, which could lead to less profit. B. Under consumption, which could lead to less profit. C. Under consumption, as hunters switch to a new animal to hunt. D. Over consumption, which could lead to extinction.
A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. If the government auctions the quota licenses, calculate the revenue collected by the government.
A. $40 million B. $240 million C. $70 million D. $30 million
You want to hire a law firm to represent you from which you derive benefit. The law firm incurs costs from providing this service. As long as marginal benefits are greater than marginal costs, value is
A. not maximized because fewer hours of services are provided. B. minimized. C. not maximized because more hours of services are provided. D. maximized.