Parity pricing can be used as a substitute for price floors because it
a. creates the same excess demand
b. allows farmers to earn income without producing goods
c. determines the value of farm goods using market mechanisms
d. has the same effect as a rationing scheme
e. is designed to maintain farmers' purchasing power
E
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Figure 9-15 depicts the cost curves for a perfectly competitive firm. This firm’s short run supply curve is the section of the MC curve between points
a. A and D.
b. B and D.
c. C and D.
d. B and C.
From the "economic perspective," people make purposeful decisions based on hypotheses.
Answer the following statement true (T) or false (F)
If competitive industry Z is making substantial economic profit, output will:
A. fall in industry Z and firms will likely leave the market. B. fall in all industries except industry Z. C. expand in industry Z as more resources will move to that industry. D. expand in industry Z, but no new firms will enter the market.
For an economy to produce at a point beyond its current ppf, the economy must
A. reduce inputs. B. be more efficient. C. waste less. D. increase its resource base.