In 1973 the Russian wheat crop failed and the Soviet Union made massive purchases of American wheat. Which statement is a result of this action?
A. The demand for farm labor and farmland was driven down in the United States.
B. There was no effect on the demand for farm labor and farmland in the United States.
C. The demand for farm labor and farmland was driven up in the United States.
D. None of these statements are true.
C. The demand for farm labor and farmland was driven up in the United States.
You might also like to view...
At the point where the marginal revenue equals zero for a monopolist facing a straight-line demand curve, total revenue is:
a. greater than 1. b. maximum. c. less than 1. d. equal to zero.
If the inflation rate in country A is 3.5% and the inflation rate in country B is 3.0%, we should expect the percentage change in the number of units of country A's currency per unit of country B's currency to be:
A. +16.7%. B. +6.5%. C. +0.5%. D. -0.5%.
The claim that all citizens should make an "equal sacrifice" to support government programs is usually associated with
a. the ability-to-pay principle. b. the benefits principle. c. efficiency arguments. d. regressive tax arguments.
Exhibit 14-7 Aggregate supply and demand curves
?
In Exhibit 14-7, if aggregate demand increases from AD1 to AD2,
A. output and prices will increase. B. output and prices will decrease. C. output alone will increase. D. prices alone will increase.