If a severe drought causes the harvest of corn to be 10 percent less than anticipated, it will cause a large increase in the price of corn if
A) corn is scarce.
B) the demand for corn is highly elastic.
C) the demand for corn is highly inelastic.
D) the supply of corn is highly elastic.
E) the supply of corn is highly inelastic.
C
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Is the cost of an all-volunteer army in the United States higher or lower than the cost of a conscripted (drafted) army?
A) Higher, unless the citizens are exceptionally patriotic B) Lower, unless the army is inefficiently managed C) Higher to taxpayers but lower to military personnel D) The same because the wage will move to the market-clearing level E) We cannot say without knowing the supply of and demand for military personnel.
According to the textbook, the noise of jet engines is not a negative externality for baggage handlers
A) because it leaves no residue in the environment. B) because the benefits are greater than the costs. C) because they are paid to live with the noise. D) because they wear hearing-protection devices. E) unless it leaves them with permanent hearing loss.
If a good has perfectly inelastic demand,
a. an infinite amount could be sold without a change in price b. the same amount would be purchased regardless of price c. any price change is matched by an equal percentage change in quantity demanded d. total revenue remains unchanged if the price rises or falls
While the __________ is not important, the _________ can have a big effect on economic behavior.
A. price level; unpredicted change in the price level B. unpredicted change in the price level; price level C. price level; predictable change in the price level D. predictable change in the price level; price level