A farmer owns 10 acres of land on which both soybean and corn can be grown. If he increases the production of corn, _____
a. the output of soybean must fall
b. the demand curve for soybean must shift leftward
c. the demand curve for corn must shift rightward
d. the output of soybean must increase too
b
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In the long run, the number of firms in an industry may change. If the number of firms increases, then
A) the supply curve will shift outward to the right. B) the demand curve will shift outward to the right. C) the supply curve will shift inward to the left. D) the demand curve will shift inward to the left.
Stocks that offer a guaranteed fixed periodic payment or dividend are known as:
a. common stock. b. restricted stock. c. close-ended stock. d. preferred stock. e. open-ended stock.
If monopolistically competitive firms are incurring losses, existing firms would
A) reduce their costs. B) charge higher prices C) make demand more inelastic. D) leave the industry.
When Ft McClellan closed down, the decline of production at the Fort fell by 500M. The economic impact on the area was even larger. Why was it larger?
a. people lost jobs at the fort, resulting in a loss of wages of 400M (Assume the MPC was 4/5) b. the military produced fewer high-tech goods in Calhoun County c. businesses located near to the Fort suffered losses in sales d. the positive impact on the environment of closing the Fort brought in many more tourism dollar than the loss of military jobs