Given that food production is crucial to an economy, why shouldn't governments subsidize farmers' water use?
What will be an ideal response?
The answer should look at the alternative uses of water and the discrimination against these uses. The costs and benefits of all economic activity need to be considered, including alternate sources of agricultural products.
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Which of the following changes will cause a downward movement along the demand curve for reserves?
A) A decrease in deposits held by banks B) A decrease in the federal funds rate C) An increase in deposits held by banks D) An increase in the federal funds rate
Which of the following is an example of featherbedding?
a. a craft union's restricting entry into its profession b. a union-imposed wage floor c. an increase in labor productivity that results from a decrease in quit rates d. attempts to reduce the sale of nonunion goods e. a construction workers union's requiring an unnecessarily large number of workers to do a particular job