The Hicks family owns a blueberry farm in Maine. The Ward family owns a blueberry farm in Massachusetts. A drought in Massachusetts destroys half of the Ward family's harvest for one year. For the Ward family, their
a. transitory income for the year of the drought likely exceeds their permanent income.
b. permanent income likely exceeds their transitory income for the year of the drought.
c. transitory income likely will be affected but the permanent income of the Hicks family will increase.
d. permanent income likely will be affected but the permanent income of the Hicks family will not be affected.
b
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Demand sensitivity depends on all of the following except:
a. how low is the price of the good. b. the sensitivity of firms' output to changes in its price. c. the consumer's income. d. the availability and closeness of substitutes. e. the amount of time a consumer has to adjust to price changes.
As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?
A) the total amount of resources employed B) the level of technology C) the level of efficiency of some factors of production D) the amount of each good or service produced