Real-world experience shows that when weather conditions reduce crop yields, the price of agricultural products will fall.
Answer the following statement true (T) or false (F)
False
The effect of reduced yield would be to shift supply to the left, resulting in a higher equilibrium price.
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In the final two decades of the twentieth century, per capita income in sub-Saharan Africa
A) remained relatively unchanged. B) increased by approximately 35 percent. C) increased by more than 75 percent. D) decreased by approximately 6 percent.
Consider two economies: A and B. Economy A is located close to the equator and is characterized by an extreme climate. The terrain in economy A is inhospitable and it lacks rivers or other water bodies in its territory
On the other hand, economy B is located in the temperate zone with a pleasant climate, fertile soil, and navigable rivers. Suppose the geography hypothesis of economic growth holds. a) Which of the two economies is likely to be more prosperous? b) Is the difference in prosperity between the two economies likely to be sustained in the long run?
In the Activists' Paradise, to increase real GDP without affecting the interest rate, it is necessary to change
A) only fiscal policy and shift the IS curve. B) only monetary policy and shift the LM curve. C) fiscal and monetary policies and shift both IS and LM. D) more policy instruments than policymakers are actually able to manipulate.
Monopolistically competitive firms have an incentive to:
A. engage in tactics for bringing in more customers. B. advertise. C. engage in brand promotion. D. All of these statements are true.