Assume that the market for cage-free eggs is perfectly competitive. All else equal, as more farmers choose to produce and sell cage-free eggs, what is likely to happen to the equilibrium price of the eggs and profits of these farmers in the long run?
A) The equilibrium price is likely to increase and profits are likely to remain unchanged.
B) The equilibrium price is likely to remain unchanged and profits are likely to increase.
C) The equilibrium price is likely to decrease and profits are likely to decrease.
D) The equilibrium price is likely to increase and profits are likely to increase.
Answer: C
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At various times, the United States has undergone the painful process of reducing military spending. Military bases from the Carolinas to California pleaded to be spared, citing huge job losses if they close. How can one rationally decide which bases to shut down, given the necessity of jobs?
What will be an ideal response?
Which of the following is a transfer payment?
A) Social Security payments B) the food stamp program C) a tax deduction D) an income tax credit
Microeconomics is concerned with issues such as
A. The level of inflation in the economy. B. The demand for bottled water by individuals. C. Maintaining a strong level of economic growth. D. All of the choices are correct.
Lines of credit provided by financial intermediaries:
A. are pre-approved loans that can increase liquidity and lowering transaction costs. B. decrease liquidity for customers but increase income for the intermediary. C. are costly for intermediaries to provide so are only available to large commercial customers. D. require deposits in the intermediary that equal or exceed the amount of the line of credit.