What has been the rationale made over the years to justify government subsidies for agriculture?
What will be an ideal response?
The arguments are several. First, farmers have been comparatively poor and need assistance in raising their incomes either through price supports or income supports. Second, the family farm is thought of as an American institution that needs to be preserved. Third, farmers accept substantial risk of loss of income and property through weather-related conditions. Fourth, farmers sell their products in a competitive market, but must purchase their inputs in markets where a producer has considerable market power.
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Which of the following labor markets is more likely to be competitive?
A) Receptionists B) Singers C) Soccer players D) Sculptors
What would happen if the government chooses to increase the number of years that a firm can enjoy patent protection from 20 years to 25 years?
What will be an ideal response?
Which of the following is an example of discretionary fiscal policy?
A) an increase in unemployment insurance payments during a recession B) an increase in income tax receipts with rising income during an expansion C) the tax cuts passed by Congress in 2001 to combat the recession D) a decrease in food stamps issued during an expansion or boom
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for coffee. What happens in this market if buyers expect the price of coffee to rise?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)