A severe hurricane hits Florida, destroying large amounts of the citrus crop. What is the most likely effect of this on the aggregate supply?
A. It will remain unchanged.
B. No effect; the economy will move along the curve to a higher price level.
C. No effect; the economy will move along the curve to a lower price level.
D. It will increase.
E. It will decrease.
Answer: E
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The Coase theorem applies when property rights are given
A) to the victim of pollution but not to the polluter. B) to the polluter but not to the victim. C) to either the polluter or the victim. D) neither to the polluter nor to the victim.
Entrepreneurs are important to market economies because
A) they engage in risk taking and innovation. B) they make up a large portion of low-skilled labor. C) they take few risks and thereby, suffer fewer bankruptcies. D) they represent the bulk of employment at large corporations.
General Motors benefits from tariffs on imported automobiles. Companies that use many automobiles, such as rental agencies, want to get them cheaply. In this case, the issue of tariff legislation involves
a. a simple majority because it promises concentrated costs and benefits b. competing interests because it promises concentrated costs and benefits c. a simple majority because it promises concentrated benefits and widespread costs d. competing interests because it promises concentrated benefits and widespread costs e. competing interests because it promises concentrated costs and widespread benefits
The total physical product of an input is the same thing as its
a. total revenue product. b. marginal physical product times output. c. output. d. total consumer's surplus.