In a developing country, there is a poor household that owns a small
land on which they grow corn. They eat part of the corn and sell the rest
of it. The value of corn a household produces (when valued at the market
price) is the equivalent of 30 percent of its income or consumption
expenditure and the value of the corn it consumes (when valued at the
market price) is the equivalent of 80 percent of its consumption expenditure.
A) Is the household a net buyer or net seller?
B) By how much does the household’s real purchasing power increase
/decrease if the price of corn rises 20 percent? Calculate.

What is an example of a good stock to buy during economic expansion? a) cyclical stock b) defensive stock c) income stock d) bond

Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.