Compared to the free-market outcome, if the production of wheat were subsidized by the government,
A) the supply of wheat would increase.
B) the quantity supplied of wheat would increase.
C) the quantity demanded of wheat would increase.
D) all of the above would occur.
E) none of the above would occur.
D
You might also like to view...
When the price elasticity of demand for a good equals
A) 0, the demand curve is vertical. B) 0, the demand curve is horizontal. C) 1, the demand curve is vertical. D) 1, the demand curve is horizontal.
For Figure 6.9 in the book, MRTS = K/(4L) with capital (K) on the vertical axis of the isoquant map. Suppose L=100 hours and K=400 machine hours at the current level of output
How much additional labor is required to maintain output if we reduce capital by one machine hour? A) One hour B) Two hours C) Three hours D) Four hours
A sudden increase in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Both B&C
Which is true of a single price monopoly firm?
A. Its supply curve is equal to its marginal cost function. B. It creates more welfare loss to society than a perfect price discriminating monopolist. C. An increased profits tax will lower the quantity the firm will produce. D. Its shutdown point is where ATC = price.