The degree to which gasoline and corn prices are linked is dependent on
A. government regulators.
B. how high gasoline prices are, because when they are high, corn-based ethanol becomes a more attractive substitute.
C. consumer driving habits.
D. consumer tastes for corn.
Answer: B
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Other things constant, the elimination of factor price distortions in developing countries would most likely
(a) decrease rural-urban migration. (b) have little effect on rural-urban migration. (c) increase rural-urban migration. (d) increase urbanization.
What is a currency board?
What will be an ideal response?
Refer to the above figure. Which of the following statements about panel D in the figure is TRUE?
A) The figure represents a long-run equilibrium for a monopolistic competitor. B) The figure represents an industry long-run equilibrium for monopolistic competition. C) The figure is in error since it doesn't show the monopolistic competitor making profits in the long run. D) The figure is in error since it has marginal cost intersecting the ATC curve at a point other than the minimum of ATC.
A decrease in the nominal interest rate would
a. encourage people to hold larger money balances. b. encourage people to hold smaller money balances. c. force the Fed to increase the money supply. d. cause households to decrease consumption.