Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the production of corn. Swain produced 150,000 bushels of corn in 2012, receiving $5 per bushel. Assuming this producer had production expenses of $300,000,
and assuming the Consumer Price Index (CPI) for 2012 was 2.50, what was his real farm income for 2012?
A) $450,000 B) $200,000 C) $750,000 D) $180,000
Answer: D
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________ creates an informational equilibrium in which people trust the wisdom of others and ignore their own information
A) Anchoring B) Hedging C) Sniping D) Herding
Figure 10-9
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Figure 10-9 illustrates a period of
A. economic growth and high inflation. B. economic growth and low inflation. C. economic recession and high inflation. D. economic recession and low inflation.
The issuer of a bond is a
A) borrower. B) creditor. C) saver. D) lender.
Which of the following statements are true?
A. Fiscal policy and monetary policy are different means used to attain the same goals. B. Budget deficits are most appropriate during recessions rather than periods of inflation. C. Automatic stabilizers help smooth out the business cycle. D. All of the statements are true.