Suppose that because of unseasonably cold weather in California, a significant portion of the orange crop has been lost to freezing temperatures. This statement means that
A. the amount of oranges available at various prices will decline.
B. the demand for oranges will rise.
C. the price of oranges will fall.
D. the equilibrium quantity of oranges will rise.
Answer: A
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
"Ceteris paribus" means
A) "invisible hand." B) "other things constant." C) "making all the necessary changes." D) "individual."
If the demand for dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged rises. b. rises and the quantity of dollars exchanged does not change. c. falls and the quantity of dollars exchanged falls. d. falls and the quantity of dollars exchanged does not change.
If capital and labor are perfect substitutes in a production function, the isoquants for this function will be
A. convex from above. B. concave from above. C. a straight line. D. any one of these depending on the particular combination of labor and capital employed.