A good way to encourage agricultural production is to
a. encourage farmers to work harder
b. subsidize input prices for farmers
c. permit farm prices to rise with increasing demand
d. create a monopoly firm to buy all farm output
e. all of the above
C
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The labor force is defined as the
A) number of people over 16 years of age. B) number of people who are working. C) sum of employed and unemployed people. D) number of people in blue-collar jobs.
When regulating a natural monopoly, average cost pricing is usually used rather than marginal cost pricing because
A) average cost pricing allows the firm to earn a normal rate of return on investment, while marginal cost pricing leads to economic losses. B) average cost pricing is more economically efficient than marginal cost pricing. C) average cost pricing leads to lower profits than marginal cost pricing. D) average cost pricing leads to a lower market price than marginal cost pricing.