Which of the following best describes a subsidy?
A. Banks make low-interest loans to farmers
B. Farmers pay the government $100 per ton of wheat produced
C. The government puts a tax of $100 per ton on wheat imports
D. The government pays farmers $100 per ton of wheat produced
D. The government pays farmers $100 per ton of wheat produced
You might also like to view...
Assuming that the Federal Reserve Banks sell $40 million in government securities to commercial banks and the reserve requirement is 20%, then the effect will be to reduce ________.
A. the money supply by potentially $200 million B. excess reserves by $8 million C. excess reserves by $200 million D. the money supply by potentially $400 million
Consider the two graphs above. Suppose there is increased concentration in the retail sector (that is, fewer, larger companies). This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
When demand is elastic: a. price elasticity of demand is greater than one
b. consumers are relatively responsive to changes in price. c. the percentage change in quantity demanded resulting from a price change is greater than the percentage change in price. d. all of the above are correct.
Economists think that the best way to determine the value of a human life is to
a. evaluate the value of a person's expected earnings in the labor market. b. evaluate the risks people are willing to take and what they would have to be paid to take them. c. determine a person's accumulated wealth at the time of death. d. do nothing; human life is priceless.