A new disease-resistant seed increases the yield of wheat. Which of the following would most likely be the result?
a. The price of wheat would soar.
b. The supply of wheat would decline.
c. Sellers would decrease the price of bread.
d. Buyers would stock up on bread, which is in short supply.
c. Sellers would decrease the price of bread.
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When tax revenues minus outlays is i. positive, the government has a budget surplus. ii. negative, the government has a budget deficit. iii. zero, the government has a balanced budget
A) i, ii, and iii B) i and ii only C) ii and iii only D) i only E) iii only
A reduction in tax expenditures _____
a. will cause tax revenues to rise b. will cause government spending on social policy to rise c. will cause inflation to rise d. will reduce the tax base
In the long run, firms in many industries often experience a falling average total cost curve as a result of:
a. gains through trade. b. increasing marginal returns. c. economies of scale. d. lower fixed costs.
Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. Consumer surplus changes by the area [E - C] if price goes from equilibrium to
A. P1. B. P3. C. < P1. D. > P3.