Ward Planter exclusively grew soybeans in each of the past three years and currently participates in the marketing loan program of the Food, Conservation, and Energy Act of 2008. If the "crop price" of soybeans at harvest is less than the pre-harvest
"loan price," Planter can:
A. sell his crop in the market and receive the difference between the crop price and loan price
as a direct payment from the federal government.
B. take a "crop credit" based on the difference between the crop price and the loan price and
use the credit to reduce federal income taxes owed.
C. receive an "emergency loan" that can be paid back over the following five years.
D. forfeit the harvest to the lender and be free of the loan, thus receiving a subsidy because
the proceeds from the loan exceed the revenues from the sale of the crop in the market.
Answer: D
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Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The average cost of the 5th T-shirt is
A) 2. B) 12. C) 52. D) 60.
An unexpected sharp reduction in inflation will most likely result in
a. the rapid growth of output and employment. b. a reduction in the actual rate of unemployment. c. a reduction in the natural rate of unemployment. d. a temporary increase in unemployment and a decline in real output.