Adverse weather conditions in Florida and other citrus-producing regions destroy a substantial portion of this year's crop of oranges. Other things being equal, the resulting decrease in supply is likely to
a. increase the price of oranges and decrease the quantity demanded.
b. increase the price of oranges, but have no effect on the quantity demanded.
c. decrease the price of oranges and increase the quantity demanded.
d. decrease the price of oranges, but have no effect on the quantity demanded.
a. increase the price of oranges and decrease the quantity demanded.
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Taxes on emissions have come to be called
A) the "command and control" approach. B) "licenses to pollute." C) spillover costs. D) the fallacy of false alternatives.
Which of the following statements regarding the use of gold as money is false?
A) It is durable. B) It is acceptable to most people. C) It is valuable relative to its weight. D) It has standardized quality.
The expansion path for a constant-returns-to-scale production function
a. is a straight line through the origin with a slope greater than 1 if w > v. b. is a straight line through the origin with a slope greater than 1 if w < v. c. is a straight line through the origin, though its slope cannot be determined by w and v alone. d. has a positive slope but is not necessarily a straight line.
The quantity demanded of money falls as the
A) interest rate falls. B) interest rate rises. C) supply of money rises. D) none of the above, since the quantity demanded of money is unrelated to the interest rate