Which of the following events would increase producer surplus?
a. Sellers' costs stay the same and the price of the good increases.
b. Sellers' costs increase and the price of the good stays the same.
c. Sellers' costs increase and the price of the good decreases.
d. All of the above are correct.
a
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Wheat is sold in world markets, usually priced in terms of bushels. In the market for wheat, the price elasticity of demand for wheat would be expressed as
A) the number of bushels of wheat sold. B) the number of whatever currency is used in purchasing the wheat. C) the number of dollars spent on wheat. D) a unitless number.
Which of the following statements is a public choice economist most likely to agree with?
A) People who work for the federal government are naturally lazy, whereas people who work for private firms are naturally hard working. B) Good government comes from good people, bad government comes from bad people. C) Change the institutional arrangements, and you will change behavior. D) Bad people naturally gravitate toward a career in politics. E) Good people naturally gravitate toward a career in politics.
In the long run, what would happen if the demand for agricultural products suddenly became elastic? Explain
What will be an ideal response?
Refer to Figure 10-5. "Crowding out" of firm investment as a result of a budget deficit is illustrated by the movement from ________ in the graph above
A) C to A B) A to B C) B to A D) B to C