Which of the following would most likely cause the supply of wheat to increase?
a. a decrease in the price of corn, a substitute for wheat
b. a technological advance that lowers the cost of producing wheat
c. an increase in the cost of producing wheat
d. a change in consumer preferences, causing them to prefer plain white bread to whole-wheat bread
B
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The case of Airbus, an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries, best exemplifies which rationale for protectionist policies?
A) helping domestic firms establish monopolies in world markets B) shielding workers from foreign competition C) protecting infant industries D) prevention of dumping in local markets
A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment?
a. Structural b. Cyclical c. Natural d. Frictional