Recall the Application about the price and supply of blueberries to answer the following question(s).According to the Application, the upward jump of the price of blueberries from 2005-2007 followed by the drop in the price of blueberries to $1.44/ lb. shows that blueberries are in:
A. a constant-cost industry.
B. an increasing-cost industry.
C. a decreasing-cost industry.
D. a zero-cost industry.
Answer: A
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Goodyear benefitted when the Federal Reserve ________ in 2008. This Fed action would help increase demand for its tires, which allowed Goodyear to increase employment and increase prices
A) implemented a series of open market sales of Treasury bonds B) drove down interest rates C) increased the discount rate D) lowered the required reserve rate
What is the relationship between the growth rate of real GDP and the growth rate of real GDP per person?
What will be an ideal response?
Macland is running a budget deficit and has issued new treasury bonds. Foreign investors are eager to buy the newly issued bonds but to do so must have Macland currency. What effect does this budget deficit have on the value of Macland’s currency?
a. The exchange rate will not change. b. The exchange rate will depreciate. c. The exchange rate will appreciate. d. The exchange rate will decrease.
Economists use the term ceteris paribus to indicate that
a. supply and demand are in balance. b. other things are assumed to be constant. c. the analysis is true for the individual but not for the economy as a whole. d. their conclusions are based on normative economics rather than positive economic analysis.