The demand for most agricultural products is:
A. elastic with respect to price but inelastic with respect to income.
B. inelastic with respect to price but elastic with respect to income.
C. elastic with respect to both price and income.
D. inelastic with respect to both price and income.
Answer: D
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Refer to the graph shown of average costs for a typical firm. The lowest per-unit costs for the industry could be achieved if:
A. one firm produced 1,000 units of output. B. one firm produced 333 units of output. C. three firms each produced 333 units of output. D. two firms each produced 500 units of output.
Which of the following would an economist classify as capital?
A. 100 shares of Microsoft stock. B. $50 bill. C. credit card. D. lawyer's personal computer.
The amount that must be paid to an individual to get them to invest in the industry is
A. reinvestment. B. financial capital. C. the explicit costs. D. a normal rate of return.
If a subsidy (going to producers) is created for a good, this would
A. move its supply curve to the right. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. cause a movement along the supply curve to a (higher price, higher quantity) point. D. move its supply curve to the left.