If land is reallocated or switched from agricultural use to recreational use, then it is likely that
A) food is not as important as recreation.
B) the demand for food is less today than in previous decades.
C) land earns a higher rent in recreational use than in agricultural use.
D) the demand curve for land in the agricultural industry is shifting to the right.
Answer: C
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For the recessions in the United States since the 1950s
A) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. B) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. C) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins. D) cyclical unemployment has been non-existent.
Why is abstraction important in developing economic theories?
Which of the following examples would have an inelastic supply curve?
a. A 3 percent increase in the price of soccer balls results in a 2 percent increase in quantity supplied. b. A 7 percent increase in the price of soccer nets results in a 10 percent increase in quantity supplied. c. A 9 percent increase in the price of soccer uniforms results in a 11 percent increase in quantity supplied. d. A 15 percent increase in the price of soccer shoes results in a 22 percent increase in quantity supplied.
In international trade, an infant industry is one:
A. that protects firms that produce products for infants. B. with a large number of very small firms. C. in which the firms are experiencing very small profits. D. in the early stages of its development.