The target price approach to the farm problem distorted the market less than the support price approach because the target price
a. does not allow the market to clear, whereas the support price does
b. increases farm incomes by creating a shortage, whereas the support price creates a surplus
c. permits the market to clear, whereas the support price does not
d. is set equal to the equilibrium price
e. is independent of market conditions and thus gives farmers a steady income
C
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Economists emphasize the importance of ____ in analyzing demand.
A. quantity B. market potential C. wants and needs D. price E. sales opportunities
The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point b could be the result of
A) an increase in technology. B) a decrease in the relative price of a soft drink. C) an increase in the relative price of a soft drink. D) an increase in the money price of a soft drink.
Assuming a fixed amount of taxes and a closed economy, calculate the value of the government purchases multiplier, the tax multiplier, and the balanced budget multiplier if the marginal propensity to consume equals 0.75
What will be an ideal response?
When depositors transfer funds from savings accounts to checking accounts,
a) M2 falls and M1 rises, while M3 remains constant b) M1 rises while M2 and M3 remain constant c) both M1 and M2 increase, while M3 falls d) M3 falls while M1 and M2 remain constant e) M1 falls, M3 rises, and M2 remains constant