In the late summer of 2005 some regions of the country were suffering from drought. What effect would we expect this to have on the stock of companies such as John Deere that manufacture farm equipment?
a. raise the demand for existing shares of the stock, causing the price to rise
b. decrease the demand for existing shares of the stock, causing the price to fall
c. raise the supply of the existing shares of stock, causing the price to rise
d. raise the supply of the existing shares of stock, causing the price to fall
b
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The increasing cost in the law of increasing cost is a(n) ____________ cost.
A. average B. fixed C. opportunity D. declining
Economists find the notion of people "needing" things to be
A) supported by the law of demand. B) considered false. C) seriously misleading because they ignore substitutes. D) considered tentatively true until the preponderance of the data suggests otherwise.
Transfer payments are subtracted from national income to get to personal income
Indicate whether the statement is true or false
Skill-biased technical change is:
A. economic growth that derives from, and therefore benefits disproportionally, the highly-skilled, highly educated workers in a society. B. the change in technology that has caused many jobs to shift away from the service sector to the technology sector. C. the changing makeup of workforces in countries with large amounts of technology. D. None of these is true.