Land used to grow corn can also grow soybeans. As the demand for corn used in ethanol began to increase the price of corn, what happened to the price of soybeans?
A) The price of soybeans fell due to lower demand for soybeans.
B) The price of soybeans rose since farmers began planting corn instead of soybeans, thus decreasing the supply of soybeans.
C) The price of soybeans rose since they were in limited supply and demand increased.
D) The price of soybeans stayed the same, since subsidies made up for any difference in the price between corn and soybeans.
Answer: B) The price of soybeans rose since farmers began planting corn instead of soybeans, thus decreasing the supply of soybeans.
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The average duration of unemployment
A) decreases during recessions and increases during expansions. B) increases during recessions and decreases during expansions. C) does not vary with the business cycle. D) decreases all the time. E) increases all the time.
Data on the U.S. income distribution suggest that
a. black-white income differentials have decreased b. black-white income differentials have increased c. the distribution of income among blacks is more uneven than the overall distribution of income d. the distribution of income among blacks is less uneven than the overall distribution of income e. the distribution of income among blacks follows approximately the same pattern as the overall distribution of income
If marginal revenue on the tenth unit of output equals $4 for a non-discriminating, profit-maximizing monopolist, then price: a. equals $4
b. is less than $4. c. is greater than $4. d. must be equal to average total cost.
Which of the following will most likely occur during the expansionary phase of a business cycle?
What will be an ideal response?