What are the environmental costs of price support programs for farmers?
What will be an ideal response?
Farm price supports encourage additional production and an over allocation of resources to agriculture. This additional production can harm the environment because it results in greater use of pesticides and chemicals. In addition, more land is cultivated than would be the case without such supports, so “marginal” land that could serve as wetlands or wildlife habitats, or could erode will be used for production.
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If a nation restricts imports, it will:
A. benefit each individual citizen in that nation. B. decrease the total value of goods and services produced in that nation. C. increase the total value of goods and services produced in that nation. D. harm each individual citizen in that nation.
If we were on Lorenz curve M, the top income quintile receives about _____% of income.
A. 24
B. 40
C. 58
D. 80
When the marginal cost of a price-taking firm is less than the market price of its product, the firm should:
a. expand output (provided that price is not less than average variable cost). b. reduce output (provided that price is not less than average variable cost). c. maintain output (provided that price is not less than average variable cost). d. charge more than the market price.
Most businesses in the United States are organized as
a. sole proprietorships b. partnerships c. corporations d. mutual trust companies e. mutual fund companies