Relating to the Economics in Practice on page 253: Subsidies for ethanol, a fuel produced from corn, have affected the market for
A. wheat.
B. corn.
C. farm land.
D. All of the above are correct.
Answer: D
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Before Social Security, 51 percent of men over age 65 worked. Today that number is
A. 9 percent. B. 32 percent. C. 43 percent. D. 24 percent.
Distinguish the concepts of comparative advantage and absolute advantage
What will be an ideal response?
Which of the following prohibits exclusive dealing?
A. The Sherman Act. B. The Federal Trade Commission Act. C. The Clayton Act. D. Case decisions, such as those for AT&T and IBM.
Suppose that Techno TV produces LCD televisions. At a price of $2,000 per television, Techno determines that its optimal output is 3,000 television sets per week. If prices are sticky and fears of a recession reduce demand for LCD televisions, we would
expect Techno to: A. reduce output in the long run. B. reduce output in the short run. C. raise prices in the short run to compensate for lost revenue. D. lower prices in the short run to offset the reduced demand.