An agricultural economist reports that corn prices are very high this year and that corn growers are earning substantial profits. He concludes that government action is needed to direct more farmers to grow corn. Is such action necessary? Why or why not?
No government action is necessary to direct farmers to grow more corn. Farmers will see how profitable corn growing is and will plant next year's crops accordingly. We would expect a lot more farmers to grow corn..
Economics
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If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
A. 2/3. B. 3/2. C. 2 D. 3 E. 8
Economics
If an agricultural market is perfectly competitive, which of the following types of behavior might be expected?
A. Economic profits encourage entry. B. Collusion in restraint of trade. C. Price wars. D. Advertising.
Economics