What is the political basis for policies such as farm price ceilings and high taxation of agriculture? Are urban residents well served by such policies?
What will be an ideal response?
Policies that hurt agriculture are usually imposed with the idea that industrialization is crucial to development. Policies that lower prices for food and raw materials, and accumulate an agricultural surplus through taxation will further that industrialization. To the extent that these policies hurt overall development efforts, urban residents will suffer as well.
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The elasticity of demand is
A) measured in money (e.g., dollars). B) measured in units of the good (e.g., slices of pizza). C) unitless. D) measured in money/unit (e.g., 1.50 $/slice of pizza).
The Sherman Antitrust Act of 1890
a. immediately reduced the number of trusts and the incidence of anticompetitive behavior b. established the Antitrust Division of the Department of Justice c. did not apply to farmers d. was not fully enforced at first e. prohibited price discrimination
Utility is:
a. easily measured, because all people derive the same utility from consumption. b. easily measured, because it is an objective concept. c. easily measured, because it is a subjective concept. d. hard to measure, because it is a subjective concept. e. hard to measure, because it is an objective concept.
Explain how the terms of trade index is calculated and what it means