Which of the following statements about the agriculture price policy is correct?
a. Price supports may induce elther an underallocation or an overallocation of resources to farm products
b. Supported prices have no effect on the allocation of resources to farm products
c. Supported prices induce an underallocation of resources to farm products.
d. Price supports induce an overallocation of resources to farm products.
Ans: d. Price supports induce an overallocation of resources to farm products.
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If an external benefit is present, then the
A) marginal private benefit curve lies above the marginal private cost curve. B) marginal social benefit curve lies above the marginal private benefit curve. C) marginal social cost curve lies above the marginal private benefit curve. D) marginal social benefit is equal to the marginal social cost. E) marginal social benefit curve is the same as the marginal private benefit curve.
U.S. citizens migrating to Illinois in the first half of the 19th century would most likely have come from:
a. Massachusetts and New Jersey. b. California and Oregon. c. North and South Carolina. d. Up the Mississippi River from Louisiana and Mississippi.
Rent seeking
a. is the attempt to find apartments in a rent-controlled city b. only makes sense in a monopolistically competitive industry c. is a zero-sum game because the public's loss is the rent seeker's gain d. is the expenditure of resources to obtain favorable treatment from government e. occurs because of cyclical majority
A well-functioning market will have high monetary costs applied to high opportunity costs
a. True b. False Indicate whether the statement is true or false