Speculators who expect a corn harvest next fall much larger than anyone now anticipates will
A) lower current corn prices and raise September prices above what they would be in the absence of the speculators.
B) lower current corn prices and lower September prices below what they would be in the absence of the speculators.
C) raise current corn prices and lower September prices below what they would be in the absence of the speculators.
D) raise current corn prices and raise September prices above what they would be in the absence of the speculators.
E) raise the expected September price of corn.
B
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During a recession, the unemployment rate ________ and the percentage of part-time workers who are involuntary part-time workers ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls E) rises; does not change
Which of the following statements about M1 and M2 is true?
A) Demand deposits are not part of M1. B) M2 is more liquid than M1. C) M1 is larger than M2. D) Savings deposits are part of M2.
Color television prices rise by 10 percent, and in response the quantity of those TVs supplied increases by 6 percent. The supply elasticity for color television sets in that price range is
A) 0.6. B) 1.66. C) 6.0. D) -1.66.
When the government bans a good it:
A. increases surplus more than any other solution to the nonexcludability problem. B. is an easy, but often ineffective, solution to the nonexcludability problem. C. creates a more efficient solution than any other to the nonexcludability problem. D. is the easiest and most effective solution to the nonexcludability problem.