More farmers have recently entered the wheat industry. In addition there has been a technological advancement in the fertilizer industry providing wheat farmers with a cheaper and a more effective fertilizer. In the market for wheat, the effects these changes will have on the equilibrium price and quantity are
A. price will increase, and quantity will decrease.
B. price will increase, and the effect on quantity is indeterminate.
C. price will decrease, and quantity will increase.
D. price will decrease, and the effect on quantity is indeterminate.
Answer: C
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Blanca has her choice of either a certain income of $20,000 or a gamble with a 0.5 probability of $10,000 and a 0.5 probability of $30,000. The expected value of the gamble:
A) is less than $20,000. B) is $20,000. C) is greater than $20,000. D) cannot be determined with the information provided.
Use the above figure. The total revenue earned by this monopolistically competitive firm is
A) $2,560. B) $1,600. C) $480. D) $1,900.
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Exhibit 8-10 Consumption function
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In Exhibit 8-10, which of the following could cause the shift from C1 to C2?
A. An increase in disposable income. B. A decrease in disposable income. C. Legislation tightening credit availability. D. Legislation lowering tax rates.