Suppose consumer preference for organic corn starts to rise while the cost of growing organic corn continues to rise. In the market for organic corn, this would be represented by the equilibrium price ________ and the equilibrium quantity ________
A) increasing; increasing or decreasing
B) decreasing; increasing or decreasing
C) increasing or decreasing; increasing
D) increasing or decreasing; decreasing
Answer: A
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As a result of the 1986 Tax Reform Act, in 1988 some high-income taxpayers had lower marginal tax rates than middle-income taxpayers
a. True b. False
What is the difference between the federal budget deficit and the national debt?
a. The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses. b. The budget deficit is the cumulative effect of all prior national debts. c. The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies. d. This is a trick question because there is no difference between the budget deficit and the national debt.
If bond prices rise in the secondary market,
a. the interest rate rises in the secondary market b. the interest rate rises in the primary market c. this has no impact on the primary market d. they fall in the primary market e. they also rise in the primary market
Refer to the above figure. If the government imposes a price floor of $60
A. the quantity of goods that will be traded is 200. B. the quantity of goods that will be traded is 0. C. the quantity of goods that will be traded is 100. D. the quantity of goods that will be traded is 150.