How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
A. The demand for beef would increase, increasing beef prices.
B. The demand for beef would decrease, decreasing beef prices.
C. The supply of beef would increase, decreasing beef prices.
D. The supply of beef would decrease, increasing beef prices.
Answer: C
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Economist's can justify supporting education through taxation on which of the following grounds?
A) Education generates spillover benefits. B) Low-income people could not otherwise afford education. C) Most economists are educators. D) Free education extends equal opportunity to all. E) Public education is more efficient than allowing education to be provided by the market.
The marginal propensity to consume is the slope of the consumption function
Indicate whether the statement is true or false
Why are many oligopolistic market outcomes conveniently described by a Prisoners' Dilemma?
A) The firms can always achieve the outcome that maximizes joint outcomes. B) The firms could do better than the Nash equilibrium if they collude. C) The outcome of a Prisoners' Dilemma is always efficient. D) The outcome of a Prisoners' Dilemma is always identical to the perfectly competitive outcome.
If the Fed sells a T-bill to an individual rather than to a commercial bank, how will this affect the money supply?
a. It will increase the money supply. b. It will increase the checking account balance of the individual. c. It will have no effect on the money supply. d. It will decrease the money supply.