According to the law of increasing opportunity costs,
A. The more one is willing to pay for resources; the smaller will be the possible level of production.
B. In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods.
C. Increasing the production of a particular good will cause the price of the good to remain constant.
D. None of the choices are correct.
Answer: B
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Corn and soybeans are alternatives that could be grown by most farmers. If government subsidies for ethanol lead to higher corn prices, this will
a. increase the supply of corn. b. increase the supply of soybeans. c. decrease the supply of soybeans. d. decrease the supply of corn. e. have no effect on the supplies of corn and soybeans.
Which of the following contributes to an institutional structure that promotes economic growth?
A. Technology. B. Property rights. C. Comparative advantage. D. The inequality trap.
Of the 197 bank failures from 2000 through 2009, approximately _________ percent occurred during the Great recession years of 2008 and 2009.
A. 40 B. 60 C. 80 D. 90
More cattle are found to have mad cow disease. As a result, consumer confidence in the safety of beef is shaken. What would an economist predict will happen in the beef market?
A. The demand curve will shift to the left. B. absolutely no change in either the quantity demand or the demand for beef C. As consumer preferences move away from beef, there is an upward movement along the beef demand curve. D. The demand curve does not shift but consumers move to a point lower down the curve.