Assume prices for corn and soybeans have been in decline over the last few months. What are the market impacts of the decline in the price of corn and soybeans on the fed cattle market that uses products from those grains as feed?
A. Increase in the price and a decline in the quantity of fed cattle;
B. Increase in the price and an increase in the quantity of fed cattle;
C. Decline in the price and a decline in the quantity of fed cattle;
D. Decline in the price and an increase in the quantity of fed cattle.
Ans: D. Decline in the price and an increase in the quantity of fed cattle.
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Which of the following favors government policies to stimulate the economy by creating incentives for individuals and businesses to increase their productive efforts?
a. supply-side economics. b. Keynesian economics. c. monetarist economics. d. Marxian economics.
Suppose hypothetically that you buy a lot of food such as tofu, veggie burgers, and organic fruit that are not included in the market basket used to compute the CPI. In addition, suppose that all of these goods have become cheaper over the last year, while the overall CPI has increased by 6 percent. Then which of the following is true? a. The CPI will understate the negative impact of inflation
on your purchasing power and standard of living. b. The CPI will still accurately state the negative impact of inflation on your purchasing power and standard of living. c. The CPI will overstate the negative impact of inflation on your purchasing power and standard of living. d. None of the answers above are correct.