Suppose new research shows that soy products derived from soybeans provide more health benefits than previously thought. At the same time, drought conditions result in extensive damage to the soybean crop. What will be the combined impact of these two factors on the equilibrium price and quantity of soybeans?
A. Price will increase, but the effect on quantity is indeterminate.
B. Price will decrease, but the effect on quantity is indeterminate.
C. Quantity will increase, but the effect on price is indeterminate.
D. Quantity will decrease, but the effect on price is indeterminate.
Answer: A
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Which of the following is characteristic of a monopolistically competitive firm?
A. The firm faces an upward-sloping demand curve. B. The firm faces an inelastic demand curve. C. The firm faces a horizontal demand curve. D. The firm produces a differentiated product.
Suppose a presidential candidate makes a statement in a debate whereby he promises that he would encourage the Fed to permanently lower the unemployment rate to 3%
His opponent claims that this type of policy idea is mired in the 1960s and would only cause inflation. Explain what the opponent means.
When there is an increase in the wages the banking industry offers accountants, what happens to the supply of accountants available to other industries?
A) The supply to other industries increases. B) The supply to other industries falls. C) The supply curve for other industries shifts to the right. D) no change
Fluctuations in the foreign ________________ rate can affect an economy’s ability to repay its outstanding international debt in the short run.
a. unemployment b. exchange c. production d. return