In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:

A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.


Answer: D

Economics

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The opportunity cost of an action:

a. is equal to the marginal cost of an action b. is equal to explicit cost c. is equal to the cost of the next best alternative forgone d. is the total cost of an action

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When a firm practices perfect price discrimination,

a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above

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The Laffer curve is a graph of the relationship between tax rates and:

a. real GDP. b. total tax revenues. c. government spending. d. inflation.

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