Good weather in wheat-producing regions of the world increased the wheat crop. As a result, wheat prices decreased worldwide. Which of the following statements best explains the situation?
a. The supply of wheat increased
b. The demand for wheat decreased
c. The demand for wheat decreased and the supply of wheat decreased
d. The demand for wheat increased and the supply of wheat increased
Answer: a. The supply of wheat increased
Economics
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Which of the following is NOT an example of an explicit cost?
A. The income the owner could have earned in his or her next best employment opportunity. B. The salaries paid to the managers who help run the business. C. The overtime wages paid to workers. D. The rent the owner pays each month to lease office space.
Economics
All else equal, more investment takes place at
A. higher market interest rates. B. higher nominal interest. C. lower market interest rates. D. higher real interest rates.
Economics