Over the past century, there has been little variation in the price of corn from one harvest to the next.
Answer the following statement true (T) or false (F)
False
Farm prices are less stable than nonfarm prices. During the 1930s, relative farm prices fell 50 percent. This experience was the catalyst for government price supports and other agricultural assistance programs.
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How does time preference affect one's willingness to invest in human capital?
A) A higher rate of time preference tends to increase human capital investment. B) A higher rate of time preference tends to decrease human capital investment. C) A lower rate of time preference tends to decrease human capital investment. D) Economists have found no relationship between time preference and human capital investment.
Typically, consumers respond to an increase in (expected) future income by ________
A) shifting the budget constraint to the left B) increasing both current and future consumption C) saving more to increase future wealth D) waiting until the income is received before changing their consumption behavior
Which of the following is TRUE about firms organized along functional lines?
a. In functional organizations workers develop functional expertise b. Workers find it difficult to share information within their division c. They inhibit the exploitation of economies of scale d. All of the above
Economic profits are competed away in the long run for a monopolistic competitor because of the absence of significant _______________________.
Fill in the blank(s) with the appropriate word(s).