Which of the following will likely occur when price floors in agriculture are implemented?
A) Quantity supplied will exceed quantity demanded.
B) Quantity demanded will exceed quantity supplied.
C) Farmland will be underutilized.
D) Supply will decrease.
Answer: A
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Which of the following goods is an example of a good that is nonexcludable but not nonrivalrous?
a. National defense. b. A fishing lake. c. A lighthouse. d. A radio broadcast.
Refer to Table 2-14. If the two countries specialize and trade, who should export motorcycles?
A) There is no basis for trade between the two countries. B) They should both be importing motorcycles. C) Scotland D) Ireland
The opportunity cost of an action:
a. is equal to the marginal cost of an action b. is equal to explicit cost c. is equal to the cost of the next best alternative forgone d. is the total cost of an action
The demand curve is downward-sloping because of the law of
A. diminishing marginal utility. B. diminishing consumer equilibrium. C. consumer equilibrium. D. diminishing utility maximization.