If the government keeps the price of bread low through subsidies, and farmers consequently buy bread to feed to their pigs, we can infer that
A) pigs are more valuable than people.
B) pork is more valuable than people.
C) the farmers find it efficient to feed bread to pigs.
D) the market system is not working.
E) waste is occurring because marginal benefit is less than marginal cost.
C
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Refer to Figure 2-11. What is the opportunity cost of producing 1 pound of cashews in Pakistan?
A) 3/8 of a bolt of cotton B) 5/8 of a bolt of cotton C) 1 3/5 bolts of cotton D) 240 bolts of cotton
Bank capital can best be described as:
A) funds contributed by shareholder purchasers of a bank's stock plus the accumulated retaining earnings B) the accumulated amount of reserves held by a bank C) the location of most of the major banks of a country D) another name for bank assets
If the marginal propensity to consume (MPC) is 0.9, the spending multiplier will be
A) 10. B) 1.11. C) 0.9. D) 0.1.
If a firm decides to produce a product that it once purchased from a firm upstream it has made a
A) horizontal decision. B) make or buy decision. C) downstream decision. D) sell or service decision.