Refer to the below graph of the market for wheat. The government adopts a price support program for wheat, and supports the wheat price at P2. The triangular area defined by points B and C and the intersection of the supply and demand curve represents the:
A. Parity ratio
B. Taxpayers' burden
C. Efficiency gain
D. Efficiency loss
D. Efficiency loss
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You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $500 billion, (2) investment = $50 billion, (3) government purchases = $100 billion, and (4) net exports = $20 billion. If the full-employment level of GDP for this economy is $620 billion, then what combination of actions would be most consistent with closing the GDP-gap here?
A. An increase in government purchases and a decrease in taxes B. A decrease in government purchases and taxes C. An increase in government purchases and taxes D. A decrease in government purchases and an increase in taxes
Since World War II, the likelihood that foreign markets would gain importance to average exporters as a source of profits has
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) increased slightly before dropping off.
When the government steps in to help determine prices, it is called
a. price ceilings. b. price floors. c. equilibrium prices. d. price control.
Owners have limited liability for debt
What will be an ideal response?