A drought has destroyed orange crops in California. The drought has caused
A) scarcity because there are less oranges now than people want.
B) scarcity because people have to switch to oranges grown in Florida.
C) a shortage because people cannot obtain as many oranges as they wish to buy at the pre-freeze price.
D) a shortage because orange growers will have less income.
Answer: C
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If the price level increases from 110.0 to 115.0, the quantity of
A) real GDP supplied will increase. B) real GDP supplied will decrease. C) potential GDP will decrease. D) real GDP demanded will increase. E) potential GDP will increase.
Compared to the previous three decades, after 1982 recessions have been ________ and expansions have been ________
A) longer, longer B) shorter, shorter C) longer, shorter D) shorter, longer
For some fisheries in the U.S., the state or federal government imposes "gear restrictions" that limit the size of boats, nets, or other equipment that may be used to harvest the fish in a given body of water
The purpose of the gear restrictions is to: A) prevent everyone from using the common property resource (fish). B) make it harder for other members of society to harvest the resource. This reduces the opportunity cost of the resource for other members of society, and the marginal social cost is closer to the private cost. C) increase the private cost of using the resource so that the private cost is closer to the marginal social cost. D) maintain traditional ways of harvesting fish, which is valuable for promoting tourism.
Which one of the following is an example of a normative statement?
A) A digital camera costs more than a disposable camera. B) Most digital cameras sold in the United States are imported from other countries. C) A camera makes a good wedding gift. D) More people will buy digital cameras as their prices decline.