If the demand for farm products is price inelastic, a good harvest will cause farm revenues to:
A. increase.
B. decrease.
C. be unchanged.
D. either increase or decrease, depending on what happens to supply.
Answer: B
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A permanent increase in income leads to
A) a small increase in current consumption. B) a large increase in current consumption. C) a small decrease in future consumption. D) a large decrease in future consumption.
Answer the following statement(s) true (T) or false (F)
1. The two major sources of water contamination are typically classified as mobile and stationary sources. 2. Because the Chesapeake Bay’s quality had not improved sufficiently, a Presidential Executive Order established a committee to develop a strategy to restore the bay. 3. A cruise ship is an example of a nonpoint source. 4. Water runoff from a major highway is an example of a point source. 5. According to the textbook application, point source pollution has been eliminated from the Chesapeake Bay.
In the later part of the twentieth century, the price of crude oil began to increase after decades of relatively steady prices, which of the following could explain this phenomenon?
A) Worldwide reserves have been increasing. B) Worldwide demand has been increasing. C) Global warming D) Extraction technology has been degrading.
Refer to the below graph. If the price increases from P1 to P2, then the total revenue will gain area:
A. B + E, but it will lose area H + I + J
B. C + F + H, but it will lose area J
C. E + F + G, but it will lose area J
D. A + B + C, but it will lose area G + I + J