You notice that the price of orange juice at your local grocery store has increased. Which of the following statements is not a possible explanation for the rise in the price of orange juice?
a. Frosty weather destroys oranges causing the price of oranges to increase
b. As a result of an increase in income, consumers wish to purchase more orange juice at every price level.
c. A recent scientific study is reported in the press that suggests that apple juice may be contaminated with pesticides.
d. Due to the bioengineering of orange trees, the domestic supply of oranges increases.
d
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Many economists are in favor of increased immigration of adult foreigners who possess high levels of skills and education. Why?
a. Economists are very caring individuals. b. Economists believe this is a way to increase understanding among different ethnic groups. c. Economists believe foreigners will work cheaper. d. Economists believe this will increase aggregate supply.
To finance a federal budget deficit, the U.S. Treasury borrows by selling:
a. Treasury bills. b. Treasury notes. c. Treasury bonds. d. All of the answers are correct.