The figure above shows the market for coffee. Coffee is a normal good. If consumers' incomes fall, the efficient quantity of coffee will ________ and the producer surplus will ________

A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase


C

Economics

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Which of the following has been confirmed by empirical tests of the Ricardian model?

A) All predictions of the model for a multi-product, multi-country world are highly unrealistic. B) The existence of nontraded goods results in a high degree of specialization among countries. C) International trade has no impact on income distribution. D) The unimportance of economies of scale as a cause of trade. E) Companies tend to export goods in which they have a relatively high level of productivity.

Economics

Which of the following inputs is most likely to be "fixed" in the short run?

A) Labor. B) Capital. C) Energy. D) Raw Material.

Economics

A currency devaluation is a(n):

A. increase in the official value of a currency in a fixed-exchange-rate system. B. decrease in the value of a currency relative to other currencies. C. reduction in the official value of a currency in a fixed-exchange-rate system. D. increase in the value of a currency relative to other currencies.

Economics

Under the Bretton Woods system, devaluation was

A. normal. B. routine. C. rare. D. a last resort.

Economics