Suppose the Development of New Drought-Resistant Hybrid Seed Corn Leads

question 121

Multiple Choice

Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following is most likely to occur?

• A) The price of corn will increase.
• B) The price of soybeans (a substitute for corn) will increase.
• C) The profits of corn farmers who quickly adopt the new technology will increase.
• D) The profits of corn farmers who do not adopt the new technology will increase.

Understand the impact of the 1970s oil embargoes on inflation and employment.

Comprehend the basis of the short-run Phillips curve and its implications for inflation and unemployment.

Recognize the rational expectations theory and its implications for monetary policy decisions.

Understand why a fixed-growth-rate monetary policy is not widely embraced.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Psychographic Studies

Research methods that examine consumers' lifestyles, interests, attitudes, and values to segment them for marketing purposes.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors and interactions.

Lifestyle

The interests, opinions, behaviours, and behavioural orientations of an individual, group, or culture.