The governmental expense of a farm price support tends to diminish as the price of the good falls.
Answer the following statement true (T) or false (F)
False
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Consumption expenditure includes spending
A) on intermediate goods and services by firms. B) on office supplies by firms. C) by households. D) by households and spending on office supplies by firms. E) by governments when they are buying goods and services that consumers also buy.
An individual would suffer lower losses or maybe even gain from an unexpectedly higher inflation rate if
a. she held much currency and on net was a lender. b. she held much currency and on net was a borrower. c. she held little currency and on net was a lender. d. she held little currency and on net was a borrower.
If the price of a depleting resource does not rise as anticipated, it may be because
A. the government prohibited the methods to extract the resource. B. new methods of mining or refining were developed. C. a price floor was passed by law. D. firms that distribute the resource cartelized.
If firms in a perfectly competitive industry are earning an economic profit and new firms enter the industry, then
A) consumer surplus decreases. B) the existing firms' economic profit decreases. C) there must be external benefits to consumption of the good. D) the new firms must incur an economic loss. E) Both answers A and B are correct.