Recall the Application about the policies used by the European Union to support the agricultural sectors of is member countries to answer the following question(s). According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. Excess supply can be generated if a government establishes a:
A. price ceiling below the market equilibrium price.
B. price ceiling above the market equilibrium price.
C. price floor below the market equilibrium price.
D. price floor above the market equilibrium price.
Answer: D
You might also like to view...
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) economic surplus is maximized. B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. C) too many consumers want to buy iced tea. D) the quantity supplied is greater than the economically efficient quantity.
Which of the following will result in an increase in labor productivity?
A) a decline in the capital stock per hour worked B) a decline in the amount of human capital per worker C) an increase in technology D) a decrease in the number of people attending institutions of higher education
The official number of poor in the United States
A) is higher today than at any other time in our history. B) has risen steadily since 1981. C) was lowest in the late 1960s. D) is lowest today.
With capitalism, which of the following do market forces reward?
a. productivity and government ownership of resources b. underutilization and government ownership of resources c. productivity and private ownership of resources d. underutilization and private ownership of resources