Assume government policy increases the demand for corn
A) The consumer surplus of corn buyers will increase.
B) The producer surplus of corn growers will decrease.
C) The producer surplus of corn growers will increase.
D) The producer surplus of corn growers will not change.
C
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A central bank's sale of securities from its portfolio will:
A. decrease the size of its balance sheet. B. only change the composition of its liabilities. C. only change the composition of its assets. D. have no impact at all on the balance sheet.
When inflation falls, people
a. make less frequent trips to the bank and firms make less frequent price changes. b. make less frequent trips to the bank while firms make more frequent price changes. c. make more frequent trips to the bank while firms make less frequent price changes. d. make more frequent trips to the bank and firms make more frequent price changes.
If the market equilibrium quantity is less than the socially optimal quantity, one can infer that:
A. the private demand curve for the activity is above the socially optimal demand. B. the private supply curve for the activity is below the socially optimal supply curve. C. there is a negative externality associated with this good. D. there is a positive externality associated with this good.
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits. B. increase their output. C. decrease their output. D. stop producing since it is earning a loss.