An important determinant of the amount of grains harvested next year by Ethiopian farmers is the amount of seeds planted this year
Given that Western nations have guaranteed to donate five hundred tons of grain next year, this year the Ethiopian farmers will: A) plant more seeds as the food aid establishes a minimum price for grain.
B) plant more seeds as the farmers' confidence is restored.
C) plant the same amount of seeds as they would have without the food aid.
D) plant fewer seeds as consumers demand for grain is completely price elastic.
E) plant fewer seeds as the price of grain will be lower with the food aid.
E
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If the exchange rate between the Mexican peso and the U.S. dollar expressed in terms of pesos per dollar is 13.5 pesos = 1 dollar, what is the exchange rate when expresses in terms of dollars per peso?
What will be an ideal response?
A market economy benefits from market power
A) if firms with market power do research and development with the profits earned. B) if market power gets so bad the government creates public enterprises. C) if the majority of the population are entrepreneurs. D) under no circumstances.
Which of the following is NOT an economic function of the U.S. government?
A. promoting price stability B. encouraging production of government-inhibited goods C. promoting competition D. providing public goods
Which of the following could make Chinese-made goods more expensive for American consumers?
A. An increase in the value of the yuan B. An increase in the inflation rate in the United States C. A decrease in the size of the U.S. trade deficit D. An increase in the value of the dollar