Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. As a result of the flooding during the winter, you would expect that
A. the price of lettuce would increase, the supply of lettuce would increase, and the quantity demanded of lettuce would decrease.
B. the supply of lettuce would decrease, the price of lettuce would increase, and the quantity demanded of lettuce would decrease.
C. the supply of lettuce would decrease, the price of lettuce would increase, and the demand for lettuce would decrease.
D. the price of lettuce would increase and both the quantity of lettuce supplied and the quantity of lettuce demanded would increase.
Answer: B
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The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is
a. defined by the dollar cost of the equipment. b. the same for every health care provider. c. measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine. d. defined by the next best use of the money invested in the equipment. e. impossible to calculate.
Marginal damages are hard to measure because
A. they can be generated from multiple sources. B. they are hard to graph. C. they happen over time. D. no one cares about them.
Assume that an economy has 50 workers, each of whom works 3000 hours per year. If labor productivity is $8, total output for this economy will be:
A. $150,000. B. $1,200,000. C. $750,000. D. $1,000,000.
Assume that a consumer spends a given budget on only two goods, and that the prices of the two goods are constant. The budget line in this case would:
A. Definitely be a straight downward-sloping line B. Possibly be a straight upward-sloping line C. Be a curved graph bowed outwards D. Be a curved bell-shaped graph