Assume soybeans are produced in a perfectly competitive industry. A soybean farmer is currently maximizing his profits. If the market price of soybeans falls, after the farmer adjusts to the new price, he will be producing __________ bushels of soybeans and his profit will be __________.
A) fewer; the same
B) fewer; lower
C) more; the same
D) the same number of; the same
C) more; the same
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The marginal cost curve:
a. Declines initially as output increases and rises with further increases in output b. Is equal to the average variable cost curve c. Rises initially as output increases and declines with further increases in output d. Is always constant
In the years ahead we can expect the F/M earnings ratio to
a. remain constant. b. continue to increase. c. continue to increase until 2020, when the 'baby boom" generation retires" and then level off. d. decline.
In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called
a. spending. b. revenue. c. income. d. wages, rent, and profit.
The level of reserves in the monetary system is determined by
A. Congress. B. the President of the United States. C. the Treasury Department. D. the Federal Open Market Committee.