Recently, salmonella outbreaks occurred due to the contamination of the processing of peanuts. Given this information, it is likely that:
A) The price of peanut products would rise and the quantity of peanut products produced would fall.
B) The price of peanut products would rise and the quantity of peanut products produced would rise.
C) The price of peanut products would fall and the quantity of peanut products produced would fall.
D) The price of peanut products would fall and the quantity of peanut products produced would rise.
Answer: C
You might also like to view...
An increase in stock prices ________ the size of people's wealth and may ________ their willingness to spend, everything else held constant
A) increases; increase B) increases; decrease C) decreases; increase D) decreases; decrease
Ginny earns $575 per week working for Classy's Jewelry Store. Eric earns $450 per week working for Pillmart Pharmacy.
What will be an ideal response?
Specialization arises because
A) some people don't like doing some tasks. B) differences in the costs of production give some producers a comparative advantage in the production of particular goods or services. C) the government directs resources into certain activities. D) inefficient production forces producers to trade.
When actual output exceeds potential output there is ________ output gap and the rate of inflation will tend to ________.
A. an expansionary; increase B. no; remain the same C. an expansionary; decrease D. a recessionary; increase