Suppose farmers agree to reduce their supply of foodstuffs. The most likely reason they would want to do this is they believe that less supply
A) means higher prices and higher total revenue.
B) means consumers will buy more of what they have to sell.
C) translates into higher-quality foodstuffs and that the higher the quality of the foodstuffs they sell, the higher the prices for what they sell.
D) will get Congress to favor them with agriculture subsidies.
E) will get Congress to decrease their taxes.
A
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There are three balance of payments accounts. The sum of the balances on these three accounts will equal
A) the total amount of the nation's foreign borrowing. B) the total amount of the nation's foreign lending. C) zero. D) the total amount of the nation's exports. E) the total amount of the nation's imports.
If the absolute price elasticity of demand for good Y is 0.5, when there is a 20 percent increase in price, we can conclude that quantity demanded
A) has fallen by 100 percent. B) has fallen by 1 percent. C) has fallen by 10 percent. D) has fallen by 4 percent.
President Reagan believed that the tax cuts of 1981 would stimulate the economy because the
a. marginal tax rates were too high, causing production costs to be too high, curbing production b. marginal tax rates were too high, causing production to be curbed by lack of demand c. marginal tax rates were too high, creating a disincentive effect on production d. marginal tax rates were too low, causing government revenues to fall, creating deficit spending and crowding out e. marginal tax rates were too low, causing government revenues to rise, creating surpluses that curbed overall production
Figure 7-7
In Figure 7-7 at 100 units, AFC equals
a.
10.
b.
100.
c.
180.
d.
1,000.