A government payment to producers for the difference between a target price and the price at which producers were able to sell their goods is known as a:
a. subsidy
b. deficiency payment.
c. producer surplus.
d. price support.
b
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Which always increase(s) as output increases?
A) Marginal Cost only B) Fixed Cost only C) Total Cost only D) Variable Cost only E) Total Cost and Variable Cost
If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur?
a. U.S. employment will increase. b. The unemployment rate of the United States will decline. c. U.S. exports will increase because foreigners will want to buy more from U.S. producers. d. U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.
Monetary policy affects real GDP by.
A. Changing aggregate supply B. Creating budget surpluses C. Changing aggregate demand D. Creating budget deficit
Which of the following goods will have the most elastic demand at any time?
A. Cigarettes B. Electricity C. Gasoline D. Water E. Jewelry