If Consumers Suddenly Began Desiring More Apples and Fewer Oranges

question 418

Multiple Choice

If consumers suddenly began desiring more apples and fewer oranges,

• A) the market price of apples would rise, creating short-run economic profits in the apple industry. Current firms will expand output and new firms will enter the industry.
• B) the market price of oranges would fall, creating short-run economic losses in the orange industry. Current firms will reduce output and some will go out of business in the long run.
• C) neither a nor b are correct.
• D) both a and b are correct.

Acknowledge the role of governmental bodies and regulations in addressing and mitigating environmental damage.

Understand the concepts of prejudice and discrimination and distinguish between their intentional and unintentional manifestations.

Describe the processes of assimilation and multiculturalism and their impact on minority and majority group relations.

Recognize the historical occurrences and impacts of genocide in North America and globally.

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Definitions:

Taxes Labor

Fiscal charges imposed on income earned from labor, either through employment or self-employment.

Labor Demand

The quantity of labor that employers are willing and able to hire at a given wage rate, in a given time period.

Deadweight Loss

The falloff in economic efficiency that strikes when equilibrium for a good or service isn’t met or is beyond reach.

Tax Revenue

The revenue governments receive as a consequence of taxes.