An increase in productivity in the agricultural sector in conjunction with an income inelastic demand for farm products
A) causes prices to fall.
B) causes prices to rise.
C) causes prices to remain constant.
D) may cause prices to rise, fall, or remain the same, depending upon the relative shifts in the supply and demand curves.
D
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Raul Prebisch's objection to having developing countries treat trade as the "engine of growth" was that
a. agricultural goods were becoming cheaper while industrial products were becoming more expensive b. industrial products were being substituted for primary products c. workers in poor countries had little bargaining power, while unions in rich countries pushed wages up d. agricultural products were becoming a smaller portion of peoples' budgets as income rose e. all of the above
Food stamps and Medicaid are examples of
a. money transfers b. resource earnings c. in-kind transfers d. tax expenditures e. capital gains
At points above the IS curve, there is an ________ and at points below the IS curve there is an
A. excess supply of goods; excess demand for goods. B. excess supply of money; excess demand for money. C. excess demand for money; excess supply of money. D. excess demand for goods; excess supply of goods.
There is an adverse selection problem in the market for used cars because:
A. Owners of poor-quality cars have a strong incentive to sell their cars, while owners of high-quality used cars have more incentive to keep their cars B. Owners of high-quality cars will have a strong incentive to sell their cars to obtain the higher prices, while owners of poor-quality cars will have more incentive to keep theirs C. Most people prefer new cars, but the high prices for new cars force most of them to buy used cars D. Government actions to pass "lemon" laws have reduced information on used cars