If a decrease in the demand for corn leads to economic losses for corn farmers,
a. some existing corn farmers will exit the industry.
b. the price of corn will remain low in the long run due to the economic losses.
c. the suppliers of corn will suffer long-run economic losses.
d. all of the above are correct.
A
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A business borrows from a bank at 7 percent but expects 3 percent general inflation in the economy. What are the nominal and real rates of interest facing this borrower?
What will be an ideal response?
Special interests are _____ on political issues where they may receive concentrated benefits
a. stable b. cyclical c. rationally ignorant d. not rationally ignorant
Each of the following items would appear as assets on the central bank's balance sheet, except:
A. loans. B. foreign exchange reserves. C. currency. D. securities.
Antony's Pizza uses the same dough, sauce, and cheese for pizza and calzones. When the price of pizza is low Antony produces more calzones. For Antony, the supply of pizza is ________ compared to the supply at a pizza restaurant that does not serve calzones.
A. less price elastic B. more price elastic C. lower D. higher