Assume that a hurricane in Brazil destroys half of the coffee crop. Considering that Brazil is a major coffee producing country, consumers expect the price of coffee to increase in the near future. How does this reflect on the demand for coffee?
a. There is a movement upward along the demand curve for coffee.
b. The demand curve for coffee shifts inward.
c. The demand curve for coffee shifts outward.
d. There is a movement downward along the demand curve for coffee.
e. The demand for coffee declines.
c
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When the policy rate hits its lower bound and inflation keeps falling, this portion of the Monetary Policy curve is
A) downward sloping. B) upward sloping. C) flat. D) undetermined.
Which economic policy would a government adopt in order to maximize net social welfare?
a. Increasing taxes on commodities with a relatively low elasticity of supply b. Increasing subsidies on commodities with a relatively high elasticity of demand c. Reducing subsidies on commodities with a relatively low elasticity of demand d. Reducing taxes on commodities with a relatively high elasticity of supply
The standard of living rises when population growth exceeds economic growth.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. An increase in Jerry's income is represented by
A. a movement from Point B to A. B. an increase in the slope of Jerry's consumption function. C. an upward shift in Jerry's consumption function. D. none of the above.