Cattle manure is an input often used in making fertilizer. Suppose a technique is discovered that can transform cattle manure into quality gasoline. What would happen in the fertilizer industry?
This alternative use for manure would cause its price to rise. If fertilizer companies could not find good substitutes for this manure, the price of fertilizer would rise. If good substitutes were available (for example, chicken manure), substitution in production would occur, reducing the magnitude of the fertilizer price increase.
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With the creation of the Federal Deposit Insurance Corporation
A) member banks of the Federal Reserve System were given the option to purchase FDIC insurance for their depositors, while non-member commercial banks were required to buy deposit insurance. B) member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors, while non-member commercial banks could choose to buy deposit insurance. C) both member and non-member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors. D) both member and non-member banks of the Federal Reserve System could choose, but were not required, to purchase FDIC insurance for their depositors.
The law of diminishing marginal utility states that total utility will decrease at an increasing rate as additional units of a commodity are consumed.
Answer the following statement true (T) or false (F)