Corn chips and potato chips are substitutes. Good weather that sharply increases the corn harvest would
a. increase consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips.
b. increase consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips.
c. decrease consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips.
d. decrease consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips.
a
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Refer to the accompanying figure. Suppose the solid line shows the current demand curve for coffee. In response to an announcement that much of next year's coffee crop has been destroyed by a storm in Brazil, you should expect:
A. neither a change in quantity demanded nor a shift in demand because next year's coffee crop will not affect the current demand for coffee. B. an increase in the quantity of coffee demanded, but no shift in the demand curve. C. the demand curve to shift to D(B) in anticipation of higher future prices. D. the demand curve to shift to D(A) in anticipation of higher future prices.
Capital
A. comes from savings. B. can be built up by holding down consumption. C. is one of four economic resources. D. All of the choices are true about capital.
When the Federal Reserve wants to stimulate the economy, it is likely to
a. increase the reserve requirement. b. increase the discount rate. c. buy government bonds from banks and other businesses. d. increase the margin requirements. e. prohibit borrowing from commercial banks.
Why did it take almost 100 years before the United States had its own national currency?
What will be an ideal response?