The productivity of the agriculture sector (of the economy) increases dramatically. A likely consequence is:
A) increased resources flowing into the agriculture sector.
B) an increase in the supply of foodstuffs and lower prices for foodstuffs.
C) an increase in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is elastic.
D) a decrease in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is inelastic.
E) none of the above
B
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The Board of Governors of the Federal Reserve System consists of
A) 7 members appointed by Congress and 7 appointed by the President. B) the presidents of each regional Federal Reserve bank. C) 12 members appointed by Congress. D) 7 members appointed by the President of the United States.
What is technological change?
What will be an ideal response?
Which of the following are reasons that banks are so heavily regulated?
a. Governments are concerned about the safety of deposits. b. The industry is a principal determinant of aggregate demand. c. Bank failures are contagious. d. All of the above are correct.
Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to
a. increase. b. decrease. c. remain unchanged. d. increase if the demand for computers was relatively inelastic, but decrease if the demand for computers was relatively elastic.