Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. In the long run, this increase in the demand for corn is likely to ________ the price of soy beans.
A. have an ambiguous effect on
B. lead to an increase in
C. lead to a decrease in
D. have no effect on
Answer: B
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Linder argues that trade is based on international similarities in preferences rather than international differences in costs of production
Indicate whether the statement is true or false
A justification for general grants is _____
a. the equalization of revenues between government units with different income levels b. higher level governments might have a greater ability to raise revenue c. progressive taxation cannot be done on the local level d. a and b
All of these are true, except
a. If production exhibits diseconomies of scope, firm should pair down production line to reduce costs. b. If production exhibits diseconomies of scope, firm should pair up production line to reduce costs. c. If production exhibits economies of scope, firm should pair up production line to reduce costs. d. If production exhibits economies of scope, firm should pair down production line to increase costs.
Fiscal Policy is controlled by
A. Congress and the President. B. private banks. C. the Supreme Court. D. the Federal Reserve Board.