Refer to the scenario above. Which of the following would have happened if the government had decided to provide an export subsidy on these crops?
A) Domestic producers would have been worse off.
B) Domestic consumers would have been worse off.
C) The government's revenue would have increased.
D) The volume of exports would have increased.
D
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The circular flow diagram divides the economy into:
a. Domestic sector and foreign sector. b. Agricultural sector and non-agricultural sector. c. Producer sector and consumer sector. d. Operating sector and non-operating sector. e. Real sector and nominal sector.
Over the course of the business cycle, most firms respond
a) to negative shocks by cutting wages b) to positive shocks by raising prices c) to negative shocks by cutting prices d) to positive shocks by raising output e) all of the above
A decrease in the perceived riskiness of Company A stock ________ the risk premium investors require to purchase Company A stock and ________ the price of Company A stock.
A. increases; increases B. decreases; decreases C. decreases; increases D. increases; decreases
If resource prices are flexible, the long-run aggregate supply curve is vertical.
a. true b. false