Other things constant, which of the following is likely to change the quantity supplied of wheat?
a. An expectation of a future increase in wheat prices
b. A fall in the price of wheat
c. A decrease in the price of the fertilizer used in wheat production
d. An increase in the price of soybeans
e. A government subsidy for farmers who do not grow wheat
Ans: b. A fall in the price of wheat
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If one party pays a fixed fee on a regular basis in return for a contingent payment that is triggered by a downgrading of a firm's credit rating, that is called a
A) credit option. B) credit swap. C) credit-linked note. D) credit default swap.
Which of the following goods are likely to be sold in a monopolistically competitive market?
a. jeans b. breakfast cereal c. electricity distribution in Chicago d. postage stamps
When comparing two alternatives X and Y, a consumer either prefers X to Y, prefers Y to X, or is indifferent between them. This property is called:
A. transitivity. B. completeness. C. the ranking principle. D. the choice principle.
Scarcity arises because
A) resources are limited and are inadequate to meet all human wants. B) shortages occur in some markets. C) natural resources are abundant. D) some people do not behave in a rational manner.