A farmer has 500 acres on which he has previously grown corn. His yield per acre is
100 bushels of corn. If his production flexibility contract payment is $21,250, then what
is the corn payment rate?
a. $0.45
b. $0.67
c. $0.50
d. $0.10
e. There is not enough information to answer the question.
The major components of a bond include all of the following except its
a. maturity date.
b. face value.
c. price.
d. coupon rate.
Meta-ideas involve
a. the methods of producing ideas.
b. persuading others of the validity of one’s ideas.
c. putting ideas in a form capable of approval in a “yes” or “no” vote.
d. the expression of ideas in mathematical form.
Exhibit 34-9
In the no specialization-no trade case, suppose country X produces and consumes 100
units of good A and 20 units of good B. Country Y produces and consumes 20 units of
good A and 60 units of good B. If the two countries specialize and trade, and the actual
amounts traded are 125 units of good A for 25 units of good B, how many more units of
good B will country X consume by specializing and trading?
a. 75
b. 25
c. 5
d. 105
e. 50
Short-run equilibrium exists
a. where the AD curve intersects the short-run aggregate supply (SRAS) curve.
b. where the AD curve intersects the long-run aggregate supply (LRAS) curve.
c. on the AD curve only.
d. on the SRAS curve only.
Suppose that the exchange rate between the U.S. dollar and the Mexican peso starts out
at $0.12 per peso, and then changes to $0.09 per peso.The result will be that Americans
will buy __________ pesos because Mexican goods become relatively __________
expensive.
a. fewer; more
b. fewer; less
c. more; more
d. more; less
Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to
the dollar. In this situation, the dollar has _________________, making Japanese goods
__________ expensive for Americans.
a. appreciated; less
b. appreciated; more
c. depreciated; less
d. depreciated; more
Under a target price system, the government can adjust the deficiency payment paid to a
farmer by deciding to pay some percentage of the difference between the target price
and the market price.
a. True
b. False
A deadweight loss is the loss to society of not producing the supply-and-demand
determined level of output.
a. True
b. False
The Keynesian transmission mechanism could be blocked by either interest-insensitive
investment or by the liquidity trap.
a. True
b. False
If, as a result of market forces, the exchange rate changes from $1 equals 11 pesos to $1
equals 9 pesos, then the dollar has
a. appreciated.
b. been revalued.
c. been devalued.
d. depreciated.
e. There is not enough information to answer the question.