Sheila sells corn in a perfectly competitive market. This month Sheila receives a higher price for a bushel of corn than she did last month. Which of the following might explain this?
A. The market demand increased for corn.
B. The market demand decreased for corn.
C. Firms entered the market.
D. Sheila's costs have decreased.
Answer: A
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An excise tax
A) acts as a negative incentive to consume that good or service. B) is illegal in Florida, Georgia, and Alaska. C) is often used to encourage the use of a good. D) is a value added tax (VAT).
The difference between the minimum price the producer is willing to accept and the price the producer actually receives for a product is referred to as:
a. market surplus b. market shortage c. buyer surplus d. seller surplus.
Between 1989 and 1994 the poverty rate went _____.
A. down substantially B. down slightly C. up slightly D. up substantially
As disposable income goes up, the:
A. average propensity to consume falls. B. average propensity to save falls. C. volume of consumption declines absolutely. D. volume of investment diminishes.