The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are becoming increasingly popular, and Desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According to the law of increasing cost,
a) the cost of producing tire will decrease while the cost of producing kiwis will increase
b) the cost of producing kiwis will increase
c) the cost of producing tires will decrease
d) the cost of producing kiwis will decrease while the cost of producing tires will increase
Ans: b) the cost of producing kiwis will increase
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The ________ the Herfindahl-Hirschman Index, the ________
A) lower; more concentrated the industry B) higher; more concentrated the industry C) higher; less concentrated the industry D) lower; higher the profits earned in the industry
The Fed does not have to go through the normal congressional appropriations process because
A) its expenses are very small. B) it was given enough funds at the time of its founding to provide for its expenses indefinitely. C) it is self financing. D) it is not part of the legislative branch of the federal government.