In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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The figure above shows the market for milk. The ________ price that producers must be offered to get them to produce 250 gallons of milk per day is ________
A) maximum; $3.25 B) minimum; $3.25 C) maximum; $2.50 D) minimum; $2.50
Margaret Thatcher, the prime minister of Great Britain in the 1980s introduced a new system to replace local government taxes
The rates were replaced by the Community Charge or 'Poll Tax', which applied the same amount to every individual resident, with an 80% reduction for the unemployed. Inspite of the fact that this tax was unpopular and was eventually repealed can you think of any reason why it could be characterized as efficient? Can you think of any way that this tax could be evaded?
The neoclassical model predicts that nations that are initially poor should have
A) slower growth rates than nations that are rich. B) faster growth rates than nations that are rich. C) growth rates equal to those of nations that are rich. D) negative growth rates.
?A perfectly competitive firm that earns an economic profit in the short run choose the output that:
a. ?maximizes the difference between total revenue and implicit cost. b. ?minimizes its total cost. c. ?maximizes the difference between total revenue and total cost. d. ?maximizes its total revenue. e. ?maximizes the difference between total revenue and explicit cost.