Because of hurricanes in Florida, the supply of oranges has substantially decreased. This statement indicates that:
A. the demand for oranges will necessarily rise.
B. the equilibrium quantity of oranges will rise.
C. the price of oranges will fall.
D. the amount of oranges that will be available at various prices has declined.
Answer: D
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If there is a decrease in the expected future profitability of capital,
A) the aggregate demand curve will shift right. B) the aggregate demand curve will shift left. C) the aggregate demand curve will become steeper. D) the aggregate demand curve will be unaffected.
Profitability in cotton farming depended on which of the following factors?
(a) Physical crop yields (b) World and domestic cotton prices (c) Subsistence farming during periods of low cotton prices (d) All of the above
When an individual's wage rises, the income effect tends to
a. increase hours worked. b. decrease hours worked. c. leave hours worked unchanged. d. it is impossible to predict what will happen to hours worked.
Explain why it is correct to say the Federal Reserve functions as the government's bank but it is incorrect to say it controls the government's budget.
What will be an ideal response?