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Suppose that rice is pays out $1000 per hectare while quinoa also pays out $1000 per hectare if the rainy season is short. If the rainy season is long, rice pays out $400 per hectare while quinoa also pays out $400 per hectare. In this scenario, to what extent does diversification help the farmer to reduce risk: A. Not at all
B. Less than before, but still helps
C. The same as before
D. More than before
E. More information is needed
Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in the equilibrium quantity of jelly sold?
What effect will a $30 billion decrease in autonomous investment have on total expenditures if the MPC is 0.9? What happens to the level of national income in an economy with an MPC of 0.8 and if autonomous consumption increases by $20 billion, auton..
During 2015, Kent, a 40-year-old taxpayer, reports the following items of income and expense: Assuming all of these items are deductible and that the amounts are before any limitations, what is Kent's taxable income for the year?
Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 20 apple trees. However the 3 acres differ in their ability to support orange trees. what would be the opportunity cost of growing another apple tree?
Suppose that your utility function is given by (I) = ??n(4??) , where ??n(??) stands for the natural logarithm of x, and I is the amount of income you make in a given year. What is your expected utility if you do not have insurance to protect against..
Using the value of MPC = 0.8, and knowing the difference between the values of expenditure multiplier and the tax multiplier, it can be safely stated t hat the reduction of taxes by $40 0 billion (other things staying the same) , Estimate increased l..
What are the advantages and disadvantages of fixed versus floating exchange rates?
Not all discrimination is prohibited by law. For example, employers routinely discriminate between potential employees based upon education or experience. Other types of discrimination are more subtle, but still legal. For example, some employers dis..
Consider the market demand for a given good. If ED= -2.5 at the current market price, then a 1 percent decrease in price will result in a:
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.5 million. In your market, you compete against two other deal..
Spending by the consumer sector is the driving force in the US economic system. Although the business and government sectors make a considerable contribution to the success of the economy, it is the spending by the consumer or household sector of the..
q1. suppose as in the federal income tax code for the united states that the representative consumer faces a wage
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