Because of the relationship among ethanol production, sugar, and corn the authors of your text have concluded that:
a. the corn subsidy is a big problem for ethanol exports.
b. the sugar quota makes sugar so cheap in the United States that ethanol producers are using it instead of corn.
c. due to the sugar quota and its high price, there is a huge demand for less environmentally friendly corn as a substitute in food products and for ethanol.
d. ethanol should be imported rather than exported.
Ans: c. due to the sugar quota and its high price, there is a huge demand for less environmentally friendly corn as a substitute in food products and for ethanol.
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Government revenue from printing money is referred to as:
A) menu costs. B) seigniorage. C) shoeleather costs. D) excise tax
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. What are Wanda's implicit costs per glass?
a. $0.18 b. $0.10 c. $0.08 d. $0.02