What are the major economic effects on output, prices, and farmers’ income from government price supports that set minimum prices for farm products?
What will be an ideal response?
Support prices tend to cause surplus output because private consumers cut back the quantity purchased at the higher support price, and sellers offer a greater quantity than at the lower market equilibrium price. Farmers gain from price supports as their gross revenues increase. Consumers lose because they must pay the higher price and receive less output.
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According to Tobin's q theory, ________ policy can affect ________ spending through its effect on the prices of common stock
A) fiscal; consumption B) fiscal; investment C) monetary; consumption D) monetary; investment
One of the sources of error in the RMSFE in the AR(1) model is
A) the error in estimating the coefficients ?0 and ?1. B) due to measuring variables in logarithms. C) that the value of the explanatory variable is not known with certainty when making a forecast. D) the model only looks at the previous period's value of Y when the entire history should be taken into account.
The contributive standard (merit standard) for distributing income implies that
A) income should be distributed equally. B) income should be distributed according to need. C) income should be distributed according to the marginal productivity of workers. D) a transfer should be contributed to an individual above his or her contribution to net output.
In 2012, about _____% of all Americans under the age of 65 did not have health insurance
a. 10% b. 12% c. 17% d. 20%