If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?
A. The quantity of milk demanded will increase.
B. The quantity of milk supplied will decrease.
C. There will be a surplus of milk.
D. There will be a shortage of milk.
Answer: C
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A market is ________ when a small number of firms compete
A) a monopoly B) perfectly competitive C) monopolistically competitive D) an oligopoly E) either monopolistically competitive or an oligopoly
The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?
A) $0.43 per book B) $0.07 per book C) $2.30 per book D) $6.00 per book
Answer the following statements true (T) or false (F)
1. The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund. 2. One reason why foreign aid is viewed as harmful is that it promotes dependency. 3. One policy recommended by most economists for promoting economic growth in DVCs is the nationalization and protection of domestic industries. 4. One recommended policy that IACs could adopt to help DVCs is to recruit and hire skilled workers from DVCs for businesses in IACs. 5. One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.
A country has a trade surplus when
A. its exports equal its imports. B. its government spending exceeds its tax revenues. C. its exports are less than its imports. D. its exports exceed its imports.