The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S2?
A. a decrease in the price of wheat
B. a subsidy for wheat production
C. an increase in the price of wheat
D. a tax on wheat production
Answer:B. a subsidy for wheat production
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Commodity money can best be described as
A) money used to purchase agricultural products B) a good used as money that also has value independent of its use as money C) standardized goods like gold that trade in a financial market D) the form of money used in a barter system
For which of the following types of goods would the income elasticity of demand be positive and relatively large?
a. all inferior goods b. all normal goods c. goods for which there are many complements d. luxuries
Suppose George's income is $10,000 and he pays a tax of $1,000, but Laura's income is $50,000 and she pays a tax of $4,000. Such a tax is:
A. regressive. B. progressive. C. proportional. D. flat.
The marginal cost curve always intersects the average total cost curve at the point at which the average total cost curve
A. is zero. B. is at its maximum. C. has a vertical slope. D. is at its minimum.