Answer the following statements true (T) or false (F)
1. As a nation's average household income rises, the percentage of household income that goes to food expenditures also increases.
2. The percent of total employment in the U.S. that is accounted for by farms has been declining in the last six decades or so, but the absolute number of farm employment has actually risen slightly over those decades.
3. Price support programs for agricultural products tend to cause shortages of these products.
4. The parity concept of agricultural policy suggests that farmers should obtain a constant ratio of the prices they receive for their farm products and the prices they pay for goods and services in general.
5. The farm price-support programs hurt consumers of the farm products, and moreover, the burden tends to be disproportionately heavier on the low-income consumers.
1. F
2. F
3. F
4. T
5. T
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What is the key assumption about marginal utility?
What will be an ideal response?
Which of the following statements is true?
A) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. D) All individuals in both countries are made better off as a result of international trade.
If an economy's population grows at 3 percent and GDP grows at 4 percent, then:
a. per capita real GDP is declining. b. the economy's standard of living is decreasing. c. per capita real GDP is negative. d. per capita real GDP is growing. e. the economy is experiencing unemployment.
Due to society's overall scarcity of resources,
a. only households are constrained by income b. only government agencies are constrained by limited budgets c. only business firms are constrained by the cost of buying their inputs d. households, business firms and government agencies all face constraints e. households and business firms face constraints, but government agencies do not