The Ogallala aquifer is a large underground pool of fresh water under several western states in the United States. Any farmer with land above the aquifer can at present pump water out of it. We might expect that
a. over time, the aquifer is likely to be overused.
b. each farmer has a sufficient incentive to conserve the water.
c. state governments have an incentive to insure that their farmers do not overuse the water.
d. resources would be used more efficiently if the government paid for the pumps farmers use to get the water.
a
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Grapes can be used to produce wine or raisins. Which graph in Figure 4-6 best depicts the effects on the U.S. raisin market of a decline in purchases of domestic wine?
A. 1 B. 2 C. 3 D. 4
If the wage falls, we know for sure that the firm will produce more in the long run but we cannot be sure whether it will use more or less capital.
Answer the following statement true (T) or false (F)
The equilibrium price level
a. determines by how much the AD curve shifts b. is inversely related to the nominal wage rate c. is influenced by the pricing behavior of all the firms in the economy d. is unaffected by changes in resource costs e. is the same thing as the interest rate
In 2016, tornadoes damaged many parts of the U.S. Midwest, destroying homes, businesses, schools, and infrastructure. In strictly economic terminology, these tornadoes are said to have caused
A) scarcity, because the damages made food and shelter scarce. B) scarcity, because some goods were difficult to get. C) shortages, because supplies were cut off and goods were destroyed. D) tradeoffs, because some areas of the country were damaged when others were not.