Assume that for Jim Swain, a corn producer from Illinois, the only source of farm income is from the production of corn. Swain produced 150,000 bushels of corn in 2012, receiving $5 per bushel. Assuming this producer had production expenses of $300,000,
and assuming the Consumer Price Index (CPI) for 2012 was 2.50, what was his real farm income for 2012?
A) $450,000 B) $200,000 C) $750,000 D) $180,000
Answer: D
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In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?
A) 23.2 percent B) 6.7 percent C) 8 percent D) 25 percent
Should a monopoly charge low introductory price in a two-period model?
A) Yes, if the extra profit in the second period is greater than the foregone in the first period. B) Yes, if the demand in the second period is greater than the demand in the first period. C) No. The first period profit is counted more. D) No. Profit maximization decisions should be made separately.