Which of the following ismostlikely to increase the supply of corn?
A. The farm worker's union successfully negotiates a pay increase for corn harvest workers.
B. The Surgeon General announces that eating corn bread contributes to baldness in men.
C. Congress and the President eliminate subsidies formerly paid to corn farmers.
D. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent.
Answer: D
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Refer to Figure 7.1. At what level of output are average total cost, average cost, average fixed cost and marginal cost increasing?
A) Q2 B) Q3 C) Q4 D) Q5 E) none of the above
The potential for a decline in product quality due to asymmetric information is commonly referred to as
A) the lemons problem. B) planned obsolescence. C) diminishing marginal product. D) the externality problem.
Suppose that a monopolist must choose between two points on its demand curve; it can sell 100 units for $3 each, or it can sell 160 units for $2 each. Which of the following is true?
a. The monopolist is facing an elastic demand. b. The monopolist is facing unit elastic demand. c. The monopolist is facing inelastic demand. d. The monopolist is facing perfectly elastic demand. e. The elasticity of demand cannot be determined with the information given.
The more diversification savers have the:
A. more willing they are to save money, and the more economic growth can occur. B. less willing they are to save money, and the more economic growth can occur. C. more willing they are to save money, and the less economic growth can occur. D. less willing they are to save money, and the less economic growth can occur.