In an effort to reduce the surplus of dairy products, agricultural legislation paid dairy farmers to slaughter their herds and sell them to packinghouses (meat producers) in 1996-1997 . How did this influence the market for beef?
a. demand increased, leading to higher beef prices
b. demand decreased, leading to lower beef prices
c. supply increased, leading to lower beef prices
d. supply decreased, leading to higher beef prices
c
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How do banks create money?
What will be an ideal response?
The fact that when the price of a good goes up, people buy less of it is known as the
A) law of supply. B) law of demand. C) concept of market equilibrium. D) need for inferior goods.
Assume the following situation. In year 1, a $400 capital stock generates a $100 GDP. One-fifth, or $20 of the $100 GDP, is put into investment. Assuming a constant capital/output ratio and no depreciation, the potential rate of GDP growth for this simple economy is
a. no growth b. 2 percent c. 5 percent d. 10 percent e. 20 percent
If we counted the value of non-cash, or in-kind, benefits given to the poor by the government, the poverty rate would be
A. higher. B. lower. C. not affected.