Assume that the market for barley is in equilibrium and the demand for barley is inelastic. Predict what happens to the revenue of barley farmers if a prolonged drought reduces the supply of barley. The drought will cause farm revenue to
A) fall because of the decrease in the quantity of barley sold.
B) rise because there will be a shortage of barley.
C) rise because the percentage increase in quantity sold is greater than the percentage increase in price.
D) rise because the percentage decrease in quantity sold is less than the percentage increase in price.
D
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Based on the figure above, when the firm maximizes its profit, it produces ________ cans per day
A) 0 B) more than 0 and less than 5 C) 5 or more but less than 10 D) 10 E) more than 10
To achieve faster growth, one possibility is to tax
A) consumption. B) saving. C) hiring. D) immigration.
A major difference between the Federal Reserve System and foreign central banks is that the
a. Fed is considered part of our government while central banks in other countries are not part of the government b. Fed is completely independent of government influence while central banks in other countries are under government influence c. Fed deals with less money than its foreign counterparts d. U.S. does not have a single central bank like its foreign counterparts e. purpose of the Fed is to make a profit while other countries' central banks exist to serve the public
If Inventory investment is higher than firms planned
A. actual investment must be negative. B. actual and planned investment are equal. C. actual investment is greater than planned investment. D. actual investment is less than planned investment.