A friend says, "I really, really need a new car." As an economist, you're thinking
A) Right! Everyone needs a new car.
B) This is an example of how objectively undefinable needs are. Many would argue that this friend could get along just fine with a reliable used car.
C) If this friend says she needs a new car, then we must all agree that a new car is a need and not just a want.
D) that a new car can only be considered a need if at least 51% of the public agrees.
B
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The traditional view of the production process is that capital is subject to
a. constant returns. b. increasing returns. c. diminishing returns. d. diminishing returns for low levels of capital, and increasing returns for high levels of capital.
Answer the following questions true (T) or false (F)
1. The U.S. is highly sensitive to increasing interest rates. 2. The U.S. farm sector is characterized by a large number of large, highly capitalized farming operations. 3. A major change in farm program policy forthcoming in the 2014 farm bill involves greater reliance on property insurance as a means of providing a safety net to farmers.