Land suitable for growing corn is usually suitable for growing soybeans. From the farmer's perspective, an increase in the price of corn will therefore tend to
A) decrease the demand for soybeans.
B) increase the demand for soybeans.
C) increase the supply (curve) of corn.
D) raise the cost of growing soybeans.
E) reduce the cost of growing soybeans.
D
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What are institutions? What is the institutions hypothesis of economic growth?
What will be an ideal response?
The monetary base does NOT include which of the following items?
i. Federal Reserve notes ii. banks' reserves at the Federal Reserve iii. U.S. government securities owned by the Federal Reserve A) i only B) ii only C) iii only D) both i and ii E) both ii and iii
"Assume that all individuals have perfect information about prices now and in the future, that they have identical tastes, that all markets are competitive, and that there is no government." This statement is indicative of how economists
a. apply the law of supply and demand. b. employ marginal analysis. c. are prevented from getting correct answers. d. abstract for analytic purposes. e. use realistic assumptions to develop theory.
Elasticity differs from the slope as a measure of responsiveness to changes in prices because:
A. elasticity changes depending on the currency prices are measured in, but this does not affect the slope. B. percentage changes do not depend on the units of measurement, whereas the slope does. C. elasticity is only useful for describing demand, but the slope is useful for describing demand and supply. D. the slope is always negative, while elasticity is not.