Because the demand for agricultural products is price-inelastic, price support programs tend to:

A. Increase farm income

B. Decrease farm income

C. Have no effect upon farm income

D. Cause farm incomes to fluctuate more than they would without such programs

A. Increase farm income

Economics

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Why is a discounted airline fare a price discrimination that can be offered?

(A) Because people who fly on business want the price discounts but do not qualify. (B) Because senior citizens qualify for discounts on certain types of flights but not on others. (C) Because people do not necessarily want to go where the discounts will allow them to go. (D) Because vacationers are willing to put up with the restrictions that the airlines impose.

Economics

Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's contribution to GDP is

A) $900. B) $1000. C) $1100. D) $1800.

Economics