Use the figure below to answer the following question.
The figure above shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S3?
A. a tax on wheat production
B. a decrease in the price of wheat
C. an increase in the price of wheat
D. a subsidy for wheat production
Answer: A
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Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process
Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 units of output and the per unit prices of capital and labor are $20 and $10, respectively. In this case, in order to minimize its costs of production the firm should: A) hire more capital and less labor. B) hire more labor and less capital. C) hire less capital and less labor. D) hire more capital and more labor.
In the national income accounts, investment includes all of the following EXCEPT:
a. stock market purchases. b. inventories. c. purchases of equipment. d. new home sales.