Which of the following arguments is not generally made to justify farm subsidies?
A. The "family farm" is an American institution that should be protected and nurtured.
B. Agribusiness firms need subsidies to achieve economies of scale.
C. Farmers sell their output in purely competitive markets but must buy inputs from
imperfectly competitive firms.
D. Farmers cannot fully insure themselves against the risks unusual to farming, such as
floods, droughts, and pests.
Answer: B
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At a peak in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP
A) greater than B) equal to C) less than D) falling below E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion.
The above table gives data on two variables. If these data were graphed, their relationship would
A) be a straight line. B) be a curved line. C) show a negative relationship. D) nonexistent.
Saving is
a. helpful for production but not necessary b. not useful for production because they imply a decrease in consumption c. required for production d. not useful for production because it is not a resource e. not useful for production because savers must be paid interest
The general view of the governments of middle- and low-income countries such as Brazil, Nigeria, India, and China is that environmental protection is
a. a necessity. b. illegal. c. a luxury. d. undemocratic.