A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called
a. inventory goods.
b. transitory goods.
c. final goods.
d. intermediate goods.
d
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A firm produces construction equipment, some of which it sells to domestic businesses and some of which it exports. Which of the following effects of capital flight in the country where it produces would likely increase the quantity of equipment it sells?
a. both what happens to the interest rate and what happens to the exchange rate b. what happens to the interest rate but not what happens to the exchange rate c. what happens to the exchange rate but not what happens to the interest rate d. neither what happens to the interest rate nor what happens to the interest rate.
Under the target price system,
A) supply is restricted. B) consumers must pay the target price. C) payments are made to the government when the price paid by consumers rises above the target price. D) farmers are paid a deficiency payment if the market price for their goods is below the target price. E) a and c