A severe freeze has damaged the Florida orange crop. The effect on the market for oranges will be a left shift of
A. demand, as consumers try to economize because of the shortage.
B. both the supply and demand curves.
C. the supply curve.
D. the supply curve and a right shift in the demand curve, and the outcome will be a higher price
Answer: C
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Which of the following observations is not true?
a. Money is divisible. b. The value of money never remains the same. c. Money has an intrinsic value. d. Money is the most liquid form of asset.
Which of the following statements is not correct?
a. The median voter theorem explains why politicians appeal to the middle of the voting distribution. b. Based on studies of human decision making, most people prefer to procrastinate, both in the immediate future and in the distant future. c. Screening refers to an uninformed party trying to extract information from an informed party. d. Advertising can be an example of a company signaling the quality of its products.
Use the following graph for a private closed economy (an economy with only a private sector and no international trade) to answer the next question.
At the equilibrium level of real GDP, saving will be
A. $100 billion. B. $50 billion. C. undeterminable from the information given. D. $150 billion.
What is the reason for the law of increasing opportunity costs?
What will be an ideal response?