A charity that used to make an appeal to people's sense of civic or moral responsibility, but no longer does, is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller
B. reduce; larger
C. increase; smaller
D. increase; larger
Answer: C
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In 2006, the European Union (EU) threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban, suppose the EU placed a tariff on the import of long-grain rice
Which of the following would be an outcome of this tariff? A) The EU would gain tariff revenue. B) Deadweight loss would decrease. C) European rice producers would decrease production. D) The price of long-grain rice in the EU would not change.
If at the prevailing interest rate the quantity of money demanded is $2 trillion, and the supply of money is $1.5 trillion, then which of the following istrue?
a. There is a shortage of money, and consequently interest rates must fall in order to achieve an equilibrium in the money market. b. There is a surplus of money, and consequently interest rates must fall in order to achieve an equilibrium in the money market. c. There is shortage of money, and consequently interest rates must rise in order to achieve an equilibrium in the money market. d. There is a surplus of money, and consequently interest rates must rise in order to achieve an equilibrium in the money market.
The foreign exchange rate affects agriculture because
A) A weaker dollar makes depresses the export demand for U.S farm commodities. B) A stronger dollar enhances the export demand for U.S. farm commodities. C) A weaker dollar makes imports of inputs used by U.S. farmers. D) None of the above.
In a market characterized by a single seller and many buyers, when is it profitable to increase the value of a product by incurring fixed costs?