Figure 4-6
Grapes can be used for wine or for raisins. Which graph in Figure 4-6 best depicts the effects on the U.S. raisin market of a decrease in purchases of domestic wines?
a.
1
b.
2
c.
3
d.
4
b
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The largest category of state and local government expenditures is
A) public welfare. B) highways. C) education. D) interest on their debt. E) Social Security.
The public education system is an example of
A) an income maintenance program. B) a negative income tax. C) the poor paying more than the market price for a service they receive. D) a subsidized service.
Which statement is false?
A. Rent is an excellent means of efficiently allocating the use of scarce land. B. Economists dislike the way the price mechanism works because it leads to extremely high rents and interest rates. C. The interest rate is especially important to long-term investment projects. D. The projected long-term corporate profits are important when considering investment projects.
Suppose that the installation, operating, and maintenance costs of a large wind turbine is four times that of a small turbine and has four times the generating capacity. The wind power industry faces
A. constant returns to scale. B. economies of scale C. increasing marginal cost. D. diseconomies of scale.