When the price of corn falls relative to the price of wheat, the market supply of wheat (which can be grown on the same land) is likely to increase
a. True
b. False
Indicate whether the statement is true or false
True
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The least costly combination of inputs is influenced by the relative prices of inputs.
Answer the following statement true (T) or false (F)
Pietro is 40 years old and is laid off from his job at the paper plant and borrows from his savings for 8 months until he finds a new job. Pietro's
a. transitory income likely exceeds his permanent income for that year. b. borrowing is representative of a normal economic life cycle. c. permanent income is largely unaffected by this one time change to his income. d. economic mobility during this year is highly unusual, as US workers tend to stay in a particular income class.
When a region can produce a good or service at a lower opportunity cost than others, it is said to have a(n) ______ advantage.
a. comparative b. productivity c. specialized d. absolute
Lower rates of inflation increase planned spending because:
A. the Fed reacts to the lower inflation by lowering interest rates. B. resources are redistributed from high-spending households to low-spending households. C. the reduction in wealth, resulting from the reduced real value of money, restrains spending. D. the prices of domestic goods sold abroad increase (with a constant exchange rate).