In order to simplify a complex situation, economic models often treat constraints as unalterable
Indicate whether the statement is true or false
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In September, USDA estimates that for Corn, the Yield per Harvest Acre is likely to be higher than that predicted in the previous month. The change in estimate (all else equal) will:
a. Increase estimates of Production of Corn b. Increase estimates of Total Supply c. Decrease estimates of Ending Stocks d. a and b are correct e. a, b and c are correct
Information asymmetry is a problem when:
A. a market is highly inefficient. B. a market is highly efficient. C. a buyer and seller have aligned incentives. D. a buyer and seller have opposing incentives.
Distinguishing among money, income, and wealth
A. A person's money is the currency held and the checking account balance, income is the earning and wealth is equal to the value of assets minus all debts B. A person's money is the currency held and the earnings from work, income is equal to the bank balance and wealth is equal to the profit from investment C. A person's money is the currency in the pocket, income is the earning and wealth is equal to asset value
Which would not cause the supply curve to shift?
A) a change in technology B) a change in factor costs C) a change in the price of the good D) a change in the prices of related goods