Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price?
A) consumers, who purchase more units of the product than they did before the price support program was implemented
B) taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place
C) producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues
D) the government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program
Answer: C
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The Malthusian population trap assumes that
(a) contraception is unavailable. (b) technological progress may be rapid. (c) fertility increases with per capita income. (d) all of the above.
A Keynesian short-run aggregate supply curve has a flatter portion and a steep portion. How does a decrease in aggregate demand affect the actual real GDP differently across these two portions?
a. There is a large decrease in the actual real GDP across the flatter portion and a small decrease in the actual real GDP across the steep portion. b. There is a large increase in the actual real GDP across the flatter portion and a small increase in the actual real GDP across the steep portion. c. There is a small decrease in the actual real GDP across the flatter portion and a large increase in the actual real GDP across the steep portion. d. There is a small increase in the actual real GDP across the flatter portion and a large increase in the actual real GDP across the steep portion.
The required reserve ratio is 10 percent, and the potential change in demand deposits is $100 million. What are original excess reserves?
A) $10 million B) $100 million C) $1 million D) $1 billion
A Chief Financial Officer (CFO) in an international company would most likely be responsible for all of the following activities EXCEPT ________.
A) managing short-term capital needs B) making financial decisions C) making investment decisions D) managing employee repatriation