Suppose the production function for coffee (C) is C = min(B,W), where B = beans in pounds and W = water in gallons. Suppose the price of water is $.10 per gallon and the price of beans is $10 per pound. The expansion path
a. depends on the price of beans only.
b. depends on the price of water only
c. depends on the price of neither beans nor water.
d. depends of the costs of both beans and water.
c
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Fractional reserve banking
The market supply in the short run for the perfectly competitive industry is
A) the same as each producer's supply. B) the sum of the supply schedules of all firms. C) divided up according to each firm's selling price. D) set at the maximum price a buyer will pay for one unit. E) equal to the average of each firm's supply schedule.
When a person lobbies Congress to grant the person the exclusive right to sell a particular good, such lobbying activity is called
A) rent seeking. B) revenue abatement. C) profit recovery. D) revenue seeking.
Explain why distributing $500 worth of food stamps to someone is not the same thing economically speaking as giving them $500 in cash? Why might the cash option make the poor better off than food stamps?
What will be an ideal response?