Suppose that because of unseasonably cold weather in Florida, a significant portion of the orange crop has been lost to freezing temperatures. This statement means that
A) the demand for oranges will rise.
B) the equilibrium quantity of oranges will rise.
C) the amount of oranges available at various prices will decline.
D) the price of oranges will fall.
C
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The presence of efficiency, minimum and union wages
A) can explain job rationing because they lower the real wage rate below equilibrium. B) does not affect job rationing because they affect only the amount of job search. C) can explain job rationing because they raise the real wage rate above equilibrium. D) can explain job rationing because they lower the natural unemployment rate. E) cannot explain job rationing because they are a natural part of the economy.
The difference between moral hazard and adverse selection is
a. moral hazard has to do with unobservable characteristics of individuals b. moral hazard has to do with unobservable actions of individuals c. adverse selection is when individuals change their behaviors because of a contract d. adverse selection is when you choose the wrong answer on a test