What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?
A. Farmers' variable costs are high compared with their fixed costs
B. Farmers' fixed costs are high compared with their variable costs
C. Farmers' prices received are greater than prices paid for agricultural products
D. Farmers' prices paid are greater than prices received for agricultural products
B. Farmers' fixed costs are high compared with their variable costs
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When someone receives a gift that they don't want:
A. it is impossible to determine the cost or value of the gift. B. the cost and value of the gift are both equal to zero. C. the cost of the gift is less than the value. D. the value of the gift is less than the cost.
If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.