The own-price elasticity for cherries at the farm level is —0.60. Because of the recent freeze in Washington, cherry production will fall by 12 percent. Cherry prices are likely to
A) Remain the same. B) Rise by 20%.
C) Fall by 20%. D) Can't tell; insufficient information.
Answer: B
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All of the following are associated with the War Industries Board except
a. the negotiation of the prices of key industrial products. b. developing and implementing the bulk line pricing system to determine industrial prices that maximized output. c. the unintended consequence of the "priorities inflation" of contracts. d. establishing and enforcing minimum wages for manufacturing workers.
A surplus can exist in the market only if there is:
a. a non binding price floor. b. a binding price floor. c. a binding price ceiling. d. a non binding price ceiling.
All choices have monetary costs.
a. true b. false
Moore's law refers to which of the following?
A) The steady state rate of growth of output per capita will equal the rate of growth of technological progress. B) The number of transistors in a chip would double approximately every 18-24 months. C) The steady state rate of growth of output per effective worker will be zero. D) The saving rate that maximizes steady state consumption is .5 (s = 0.5). E) none of the above