The Smith family owns an apple orchard in Illinois. The Jones family owns an apple orchard in Wisconsin. A late frost destroys half of the Smith family's harvest for one year. For the Jones family, their
a. transitory income for the year of the frost likely exceeds their permanent income.
b. permanent income likely exceeds their transitory income for the year of the frost.
c. permanent income will be more affected by the frost than their transitory income.
d. Both a and c are correct.
a
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The lending ability of commercial banks increases when the ________.
A. discount rate is raised B. Fed buys securities in the open market C. Treasury collects tax revenues D. reserve requirement is raised
The price controls on consumer goods during World War II led to
a. permanent surpluses. b. stable long-term prices. c. a burst of inflation when they were ended. d. increased production of consumer goods to satisfy demand.
Subprime mortgage
What will be an ideal response?
Game theory is necessary to understand which kinds of markets? (i) perfectly competitive (ii) monopolistically competitive (iii) oligopoly (iv) duopoly (v) monopoly
a. (i) and (ii) only b. (iii), (iv), and (v) only c. (iii) and (iv) only d. (i), (ii), (iii), (iv), and (v)