A decrease in both the equilibrium price and the equilibrium quantity of rice is best explained by:
A. an increase in the demand for rice.
B. a decrease in the demand for rice.
C. a decrease in the supply of rice.
D. an increase in the supply of rice.
Answer: B
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Governments exist to
A) maintain property rights. B) provide non-market mechanisms for allocating scarce resources. C) implement arrangements that redistribute wealth and income. D) all of the above.
Nonfinancial businesses in Germany, Japan, and Canada raise most of their funds
A) by issuing stock. B) by issuing bonds. C) from nonbank loans. D) from bank loans.
Compared to English and colonial vessels, Dutch flyboats:
a. were lighter. b. required smaller crew. c. carried fewer armaments. d. cheaper to build and operate. e. All of the above.
In recent years, the number of farms has fallen while the average farm size has increased. What concept may explain this phenomenon?
a. diminishing marginal returns b. declining productivity c. diseconomies of scale d. economies of scale e. good weather in midwestern states