Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop. The acreage he previously devoted to tomatoes and pumpkins will be converted to field corn that is harvested by machines
Of the following, which could have led to the shift from labor intensive tomato production to field corn? A) The market price of tomatoes increased.
B) Farm workers' reservation wage fell.
C) The wage rate for farm workers increased.
D) All of the answers are true.
C
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The cost of consumption has two components:
a. the substitution effect and the income effect b. the law of demand and the law of diminishing marginal utility c. the price effect and the income effect d. the money price and the time price e. saving and taxes
If the demand for pizza increases, then as a result, it is highly likely that the demand for:
A. chicken nuggets will fall. B. soda will increase. C. mozzarella cheese will increase. D. All of these are a likely result.
A price floor on the sale of wheat would be likely to benefit
A. bread buyers. B. bread producers. C. wheat farmers. D. flour mills.
Economists are:
A) concerned with developing theories but not interested in solving problems. B) interested in solving problems but not concerned with developing theories. C) reluctant to predict changes in variables such as prices, employment, and spending. D) not always in agreement on the best way to implement policy decisions.