Refer to the information provided in Figure 16.3 below to answer the question(s) that follow. 
Figure 16.3Refer to Figure 16.3. If the firm maximizes profits and the government ________, it will produce 20 units of output.
A. establishes a price ceiling of $8
B. does not require it to take damages into account
C. requires it to take damages into account
D. establishes a price floor of $6
Answer: B
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How would a decrease in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase. b. The demand for newly constructed homes will decrease. c. The supply of newly constructed homes will increase. d. The supply of newly constructed homes will decrease.
The Keynesian revolution was based on the assumption of price and wage ________ and thus the need for an activist ________ policy
A) flexibility, monetary B) flexibility, fiscal C) stickiness, monetary D) stickiness, fiscal
Official data may overstate the extent of poverty because
a. poverty is a relative as opposed to an absolute concept. b. it does not add "in-kind" transfers to the incomes of the poor. c. it overstates the taxes paid by the poor. d. it overestimates the amount the poor earn in the "underground economy."
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
What will be an ideal response?