A decrease in the US cattle herd because of drought in Texas will
A. shift the supply curve of US corn to the right.
B. shift the supply curve of US corn to the left.
C. shift the demand curve for US corn to the right.
D. shift the demand curve for US corn to the left.
Answer: D. shift the demand curve for US corn to the left.
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Madison is a third-grade public school teacher who doesn't own a car and uses public transportation. According to public choice theory, which of the following four politicians for a public office would Madison be most likely to vote for in the upcoming election?
a. Politician A proposes increasing the property tax on personal automobiles and using the money to increase teacher salaries by 10 percent. b. Politician B proposes an across-the-board increase in state income tax rates and using the money to increase the benefits paid to unemployed workers. c. Politician C proposes increasing the property tax on personal automobiles and using the money to increase the benefits paid to unemployed workers. d. Politician D proposes an across-the-board increase in state income tax rates and using the money to improve the highway system.
Define “producer surplus.”
Please provide the best answer for the statement.