Which of the following is an example of a change in derived demand?
A. The demand for ice cream increases during a heat wave.
B. The demand for large pickup trucks falls when the price of gasoline increases.
C. The demand for buns increases when the price of food truck hot dogs increases.
D. The demand for sunscreen falls when the local swimming pool increases prices.
Answer: C
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Extremely cold winter weather has destroyed oranges in Florida. The freeze has caused
A) scarcity because there are less oranges now than people want. B) scarcity because people have to switch to other types of citrus fruits. C) a shortage because people cannot obtain as many oranges as they wish to buy at the pre-freeze price. D) a shortage because the orange growers will have less income.
Because employer-provided health insurance was too expensive, a major employer decided to self-insure and simply pay for medical bills itself rather than a premium to an insurance company. As a result
a. they are more likely to institute a wellness program for employees b. they are less likely to institute a wellness program for emp c. they are indifferent with regards wellness programs d. they will regret this decision
_______________________ are economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the _____________.
a. Keynesian economists; long run b. Keynesian economists; short run c. Neoclassical economists; long run d. Neoclassical economists; short run
Which of these contributes to the existence of monopoly power?
A. A continuously decreasing long-run average cost curve B. Possession of a patent C. Control over essential output D. All of these responses are correct.