An advance in farm technology that results in an increased market supply is
a. good for farmers because it raises prices for their products but bad for consumers because it raises prices consumers pay for food.
b. bad for farmers because total revenue will fall but good for consumers because prices for food will fall.
c. good for farmers because it raises prices for their products and also good for consumers because more output is available for consumption.
d. bad for farmers because total revenue will fall and bad for consumers because farmers will raise the price of food to increase their total revenue.
b
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Consumer theory predicts that a consumer will purchase the product with the highest marginal utility per dollar.
Answer the following statement true (T) or false (F)
The Federal Reserve System is the central bank of the United States.
Answer the following statement true (T) or false (F)
Using fiscal policy to stabilize the economy is difficult because
A. there are time lags involved in the use of fiscal policy. B. the effects of policy changes are known with certainty. C. the size of the government debt doesn't matter. D. potential income is known.
The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.