The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:
a. cigarette smokers often wear cotton shirts.
b. when incomes rise, people consume more cotton and tobacco.
c. firms can switch from growing tobacco to cotton and vice versa.
d. tobacco is an input in the production of cotton.
e. cotton and tobacco are unrelated markets in all ways.
c
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For barter exchange to take place,
a. there has to be a double coincidence of wants b. the goods must be divisible c. money must be assigned to each barter transaction to indicate the values exchanged d. no less than four parties (at least two sellers, two buyers) to the exchange are needed e. gold has to be one of the goods traded
If demand is unit elastic, then a 10 percent increase in the price will lead to a 10 percent increase in quantity demanded
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. The problems of the inner city ghettos were just as bad 50 years ago as they are today. B. There was a huge outward migration of middle- and working-class blacks from the ghettos in the 1970s and early 1980s. C. About 2 out of 5 poor blacks live in areas of extreme poverty. D. None of these statements are false.
The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. 1 Pound of Bread1 Gallon of WineCapital Input5 units2 unitsLabor Input4 units1 unit Which of the following is most likely to happen if Country A engages in free trade with other countries?
A. The prices of both bread and wine will fall in the domestic market. B. The price of bread will rise but the price of wine will fall in the domestic market. C. The price of bread will fall but the price of wine will rise in the domestic market. D. The prices of both bread and wine will rise in the domestic market.