Wide price swings in farm products are the result of
A. Supply shifts and the relatively elastic demand for food.
B. Supply shifts and the relatively inelastic demand for food.
C. The high income elasticity of food demand.
D. Demand shifts and the relatively elastic supply of food.
Answer: B
You might also like to view...
The two largest sources of tax revenue for the U.S. federal government are
A. personal income taxes and payroll taxes. B. personal income taxes and corporate income taxes. C. payroll taxes and excise taxes. D. excise taxes and customs duties.
Inflation is often accompanied by
a. seigniorage b. forced saving c. financial repression d. large government budget deficits e. all of the above
At an exchange rate of $1 = €1 in Figure 36.1, there is
A. A surplus of dollars. B. Equilibrium in the foreign exchange market. C. a shortage of dollars. D. A shortage of euros.
Monetary payments to nonowners of a firm are called:
A. implicit costs. B. accounting costs. C. explicit costs. D. economic costs.