Refer to the diagram below of the market for corn. If the price in this market is at $4 per bushel, then there will be a:
A. Surplus and the price will tend to rise
B. Shortage and the price will tend to rise
C. Surplus and the price will tend to fall
D. Shortage and the price will tend to fall
Answer: C
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Shareholders with diversified portfolios will encourage
a. social decision-makers to be risk-neutral. b. corporate decision-makers to be risk-neutral. c. corporate decision-makers to be risk-preferring. d. individual entrepreneurs to be risk preferring.
Which one of the following is an example of a normative statement?
A) Public school teachers are not paid enough. B) The average public school teacher earns less than the average truck driver. C) The average public school teacher earns more than the average truck driver. D) Students in smaller classes perform better on standardized tests.
Explain what role money illusion plays in determining the Fed's ability to affect output in the short run
What will be an ideal response?
Purchasing power parity refers to
A. Converting each country's GDP into U.S. dollars B. Dividing each country's GDP by the size of its population C. Adjusting GDP figures for the fact that prices are much lower in some countries than in others D. Adjusting different GDP figures for inflation over time