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.
B
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When optimizing in levels, if the ________ exceeds the ________, Project A is chosen over Project B
A) marginal benefits of Project B; marginal benefits of Project A B) net benefits of Project A; net benefits of Project B C) total benefits of Project A; total benefits of Project B D) marginal cost of Project A; marginal costs of Project B
Which of the following measures is the best measure of money as a medium of exchange?
A) M1 B) M2 C) M3 D) None of the above
The "rational expectations revolution" refers to a substantial change in the thinking of ________
A) households and businesses B) policy makers C) macroeconomists D) elected officials
Which of the following conditions distinguishes the monopolistic competitor from the monopolist?
a. profit-maximizing rule b. downward slope of demand curve c. entry of rivals d. short-run economic profits