Relating to the Economics in Practice on page 253: Which of the following would be an expected result of increased government subsidies for ethanol, a fuel produced from corn?
A. decreases in the price of land used to farm grains other than corn
B. a decrease in the production of corn relative to other grains
C. an increase in the price of land used to farm corn
D. an increase in the price of gasoline made in part from ethanol
Answer: C
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A country's labor demand curve shifted to the right after the adoption of a new technology. This implies that the use of the new technology ________, assuming all else equal
A) reduced the marginal product of labor B) lowered the minimum wage that firms need to pay C) increased the minimum wage that firms need to pay D) increased the marginal product of labor
When the Fed purchases U.S. government securities through the open market, the money supply: a. increases, the interest rate falls, and the quantity of money demanded increases. b. falls, the interest rate falls, and the quantity of money demanded increases
c. increases, the interest rate increases, and the quantity of money demanded increases. d. falls, the interest rate increases, and the quantity of money demanded falls. e. falls, the interest rate falls, and the quantity of money demanded falls.