"The recent hurricanes in Florida are bringing financial gain to California citrus growers. Due to extensive damage to the Florida citrus crop, California citrus products are commanding their highest prices ever"
Which of the following statements best explains the economics of this quotation? A) The supply of Florida oranges decreased, causing their price to increase, which then increased the demand for substitute California oranges.
B) The supply of Florida oranges decreased, causing the supply of California oranges to increase and the price of California oranges to rise.
C) The demand for Florida oranges decreased because of the hurricanes, causing a greater demand for California oranges and an increase in the price of California oranges.
D) The demand for Florida oranges decreased, causing their prices to rise, therefore increasing the demand for California oranges.
A
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The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________
A) $200; $150 B) $350; $200 C) $200; $50 D) $350; $150 E) $150; $250
An HMO hires radiology services from India to cut costs. If all else remains equal, this will
A) decrease net exports. B) increase the current account balance. C) decrease the balance of trade. D) decrease the financial account.
The transfer by check of a demand deposit written on one bank into another bank with no excess reserves gives the recipient bank additional liabilities
What will be an ideal response?
Assume that a consumer purchases two products and the consumer's money income increases. All other things equal, the most likely effect is:
A. no change in the consumer's buying pattern. B. an inward shift in the budget line because the consumer can now purchase less of both products. C. an outward shift in the production possibilities curve because the consumer can now satisfy more wants. D. an outward shift in the budget line because the consumer can now purchase more of both products.