In early 1996, Congress proposed an agriculture bill that would gradually reduce price supports for many agricultural products. If the bill were to be approved, what would most likely happen to the number of families employed in agriculture?
a. It would decrease, because agricultural prices would fall.
b. It would decrease, because agricultural prices would rise.
c. It would increase, because agricultural prices would fall.
d. It would increase, because agricultural prices would rise.
a
You might also like to view...
Which of the following events shifts the aggregate demand curve leftward?
A) an increase in consumption expenditures B) a decrease in taxes C) a decrease in government expenditures on goods and services D) an increase in net exports of goods and services
Property rights and territorial hunting rights:
a. had little bearing on the depletion of the beaver in 1700s. b. were lacking and thereby crucial to depletion of the beaver in the 1700s. c. could have provided incentives against overharvest of the beaver in the 1700s d. Both b and c are correct. e. None of the above are correct.
Supply curves generally slope upward because of all of the following reasons except one. Which is the exception?
a. Producers are willing to offer more of a good at higher prices. b. A higher price attracts resources from less-valued uses. c. Producers must be compensated for the rising opportunity cost of additional output. d. Producers have a greater incentive to sell more as the price increases. e. The price of a good usually must fall to induce an increase in quantity supplied.
In the case of perfectly inelastic demand, the demand curve is:
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.