According to Chapter 1 of the Undercover Economist, the real explanation for why coffee is relatively expensive outside of a Washington DC subway stop is presented as
A) The relative scarcity of similar locations
B) The lack of organization of buyers into a collective
C) The quality of the coffee
D) The high incomes of Columbian coffee growers
Answer: A) The relative scarcity of similar locations
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Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, real GDP per capita has ________.
A. decreased by $25 per person B. increased by $533 per person C. decreased by $533 per person D. increased by $25 per person
Which of the following is the best example of a monopoly in the United States?
a. the U.S. Postal Service. b. the aluminum industry. c. a government-regulated public utility. d. the automobile industry.
Which of the following statements is always true with respect to oligopolists?
a. They react slowly to actions taken by other firms b. They lower prices together c. They raise prices together d. They know with certainty what they other firms will do e. They take into consideration how other firms might react.
The principal of a loan is the:
A. original amount of the loan. B. set of rules and conditions borrowers agree to when taking out a loan. C. set of rules and conditions savers agree to when agreeing to let someone borrow their money. D. original amount that people want to borrow.