Suppose that because of unseasonably cold weather in Florida, a significant portion of the orange crop has been lost to freezing temperatures. This statement means that
A) the demand for oranges will rise.
B) the equilibrium quantity of oranges will rise.
C) the amount of oranges available at various prices will decline.
D) the price of oranges will fall.
Answer: C
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Which of the following statements most accurately describes the "Fisher Effect"?
a. The Fisher Effect states that when the rate at which the money supply grows is increased, nominal interest rates fall. b. The Fisher Effect states that when the the rate at which the money supply grows is increased, real interest rates fall. c. The Fisher Effect states that when the rate at which the money supply grows is increased, nominal interest rates rise. d. The Fisher Effect states that when the rate at which the money supply grows is increased real interest rates rise. e. None of the above statements are correct.
A period of decline in total output, income employment, and trade, lasting six months or longer, is defined as a:
a. Secular trend b. Business cycle c. Trough d. Recession
Refer to the graph shown. Total surplus is maximized when:
A. producers are able to charge a price above P1. B. excess demand is maximized. C. consumers are able to pay a price below P1. D. the market is in equilibrium at price P1 and quantity Q1.
Which of the following is most likely to be a variable cost?
A. Fuel and power payments. B. Interest on business loans. C. Rental payments on IBM equipment. D. Real estate taxes.