The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?
A) Graph A
B) Graph B
C) Graph C
D) Graph D
C
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Social insurance taxes are paid by wages and investment income
Indicate whether the statement is true or false
Which of the following is a disadvantage of government provision of a public good?
a. The government lacks information about what people are willing to pay for the good. b. The government does not provide enough of any public good. c. The private sector can provide all public goods at a lower cost. d. None of the above is a disadvantage.
Land and capital are substitutes. If rent goes up and the amount of capital used goes up, we can assume that the
A. output effect outweighed the substitution effect. B. the substitution effect outweighed the output effect. C. the substitution effect and the output effect canceled each other out. D. there is no way to determine the relative weights of the substitution effect and the output effect.
If the exchange rate measured in euros per dollar increases, then
A. neither currency appreciates or depreciates. B. the dollar depreciates relative to the euro. C. the euro depreciates relative to the dollar. D. the euro appreciates relative to the dollar.