Refer to the diagram for the corn market. What effect will a price support of B have on the gross income of farmers?
A. Gross income will be unchanged, although profits will rise.
B. Gross income will increase from 0MFG to 0BKL.
C. Gross income will increase from 0AJH to 0BCG.
D. Gross income will decrease from 0BCG to 0BKL.
C. Gross income will increase from 0AJH to 0BCG.
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In graphing the Solow growth model, the per-person production function is used to derive the ________ per-person line, with the vertical distance between them being ________ per person
A) national saving, investment B) national saving, consumption C) steady-state investment, capital D) steady-state investment, depreciation E) steady-state investment, national saving
The post-World War II record shows that recessionary gaps may be long-lasting because ____ tends not to occur
a. deflation b. reflation c. stagflation d. disinflation
Which of the following is the most likely to be a variable factor of production at a university?
A. The location of the university B. The size of the student union C. The number of librarians D. The size of the football stadium
In general, individuals and nations should specialize in producing those goods for which they have a(n):
A. absolutely comparative advantage. B. comparative advantage. C. absolute advantage and a comparative advantage. D. absolute advantage.