The trade-offs facing consumers include:
A) how to allocate income across goods and serves.
B) how to allocate income between consumption and savings.
C) both A and B
D) none of the above
C
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Define the production function. Discuss why the production function exhibits diminishing returns
What will be an ideal response?
If the government offers to pay wheat farmers $1 for every bushel of wheat they market next year, in addition to the market price, the price of wheat will be
A) higher than it would otherwise have been. B) lower than it would otherwise have been. C) one dollar. D) the same as it would otherwise have been although wheat farmers will be better off.
Global warming is an externality
Indicate whether the statement is true or false
If incomes in the United States increase, other things equal, then U.S. _____
a. imports increase and exports remain constant b. exports increase and imports decrease c. imports decrease and exports decrease d. imports remain constant and exports increase e. net exports remains constant