Subsidies _______________the cost of production, encouraging current producers to stay in the market and new producers to enter.
Fill in the blank(s) with the appropriate word(s).
Answer: lower
Economics
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Which of these is an example of economies of scale?
(A) A restaurant charges customers $1 a glass for water that was once provided for free. (B) A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land. (C) An Internet access company charges customers different rates for using the Internet at different times of day. (D) A shoe store finds it can increase profits by hiring high school students who are willing to work for minimum wage.
Economics
Use the following graph to answer the next question.
If the supply of money was $200 billion, the interest rate would be
A. 1%. B. 2%. C. 3%. D. 4%.
Economics