"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run, what is TRUE if the production of ethanol increases?
A) The demand for corn will increase.
B) The supply of ethanol will decrease.
C) The supply of corn will increase.
D) The demand for ethanol will increase.
A
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Which of the following is true?
a. Most stockholders own stock because they want to run the business. b. The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future. c. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits. d. Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
If the government wishes to encourage firms to internalize externalities, they should tax activities resulting in ________ externalities and subsidize activities resulting in ________ externalities.
A. no; positive B. positive; negative C. negative; positive D. negative; no