Farm prices and total revenue have generally been failing because:
a. productivity in agriculture has been increasing
b. demand for farm products is income elastic
c. demand for farm products is price elastic
d. all of the above
Answer: a. productivity in agriculture has been increasing
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What are the three functions that banks perform as financial intermediaries?
What will be an ideal response?
Based on what we know about asset price formation, what steps can a government use to restrict the formation of an asset price bubble?
A) Lower interest rates in order to discourage savings and investment B) Loosen lending requirements for banks, which encourages investors to buy bank stock rather than the "bubbling" asset C) Increase the money supply D) Raise interest rates in order to increase the costs of financing asset purchases
The best example of a public good is
A. education. B. national defense. C. automobiles. D. electricity.
Refer to the above figure. Suppose that Cheerios and Apple Jacks are substitutes. Which diagram shows the effect on the demand for Cheerios when the price of Apple Jacks cereal has decreased?
A. A B. B C. neither graph D. both graphs