A drought has destroyed orange crops in California. The drought has caused
A. a shortage because people cannot obtain as many oranges as they wish to buy at the pre-drought price.
B. scarcity because there are less oranges now than people want.
C. a shortage because orange growers will have less income.
D. scarcity because people have to switch to oranges grown in Florida.
Answer: A
You might also like to view...
If freezing weather destroys half of the current Florida orange crop, wealth will increase for
A) almost all Florida orange growers. B) no Florida orange growers. C) some Florida orange growers and all California orange growers. D) some Florida orange growers and some California orange growers.
For the Cobb-Douglas production function F(L,K) = AL?K?, a technical change that increases the productivity of capital would be represented by:
A. an increase in the value of ?. B. an increase in the value of ?. C. values of ? and ? for which ? > ?. D. an increase in the value of A.
Vertical and horizontal equity are widely accepted and applying them to evaluate a tax system is always straightforward
a. True b. False Indicate whether the statement is true or false
The graph above shows domestic supply and demand with trade. With trade, this country can purchase at the world price, Pw. Which of the following areas represents producer surplus with trade?
A) Pw-A-0 B) Pw-B-Qd-0 C) P1-B-Pw D) P1-B-A-0