Industria specializes in the production of heavy machinery. It exports machinery to the rest of the world and imports oil from the Gulf countries. Based on this information, we can conclude that Industria is a(n) ________ economy

Answer the following statements true (T) or false (F)

1. The choice of the most efficient production technique is not affected by how much buyers want to buy the product. 2. In a market system, a consumer's willingness to pay—but not his ability to pay—is based on his income. 3. Even if prices are fixed and competition is restricted by the government, the "invisible hand" will still work in the economy and lead to economic efficiency. 4. In a competitive market economy, firms and resource suppliers seeking to further their own self-interest will end up, as though guided by an "invisible hand," promoting the public interest.

Converting corn into ethanol is most profitable when there is/are:

a. High ethanol prices and low corn prices b. Low ethanol prices and low corn prices c. Low ethanol prices and high corn prices d. When the amount of ethanol produced approaches the limits of the amount required in production of gasoline blended with 10% ethanol (the current "blend wall") e. Restricted expansion of ethanol production capacity