Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. The federal government marketing order that helped reduce asymmetric information about kiwifruit led to:
A. a decrease in the spread between the price of New Zealand and U.S. kiwifruit.
B. lower quality kiwifruit sales.
C. more kiwifruit imports.
D. lower kiwifruit sales.
Answer: A
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When Federal Reserve Banks add to their holdings of government securities,
A) commercial banks must reduce their net lending. B) commercial bank reserves increase. C) the Fed is extending less credit to the economy. D) the stock of money declines.
The line joining the old and new optimum points following a pivotal rotation of the budget line is: a. the price-consumption curve
b. the income-consumption curve. c. the Engels curve. d. the hypothetical budget line
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. Now, suppose that the 2015 price forecast is drastically revised downward to $5. Under the revised forecast how much profit (loss) does Bartech, Inc. expect to earn?
A. $16,000 B. $18,000 C. -$12,000 D. $2,500 E. $0
The law of diminishing marginal utility
a. is another way of expressing the law of demand b. states that people's inclination to consume basic goods falls as incomes increase c. shows that goods lose their individual values as the total utility of all goods decreases d. is the utility equivalent to the law of increasing costs e. states that total utility rises at a decreasing rate as consumption increases