In Figure 32.1, at the supported price-quantity combination where production is unlimited, and government buys the excess, the value to consumers is 
A. 0P*CQ*.
B. 0HCQ*.
C. 0ABQD.
D. 0PfloorBQD.
Answer: C
You might also like to view...
If a German pension fund decides to purchase U.S. government bonds, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.
Efficiency wages are:
A. wages deliberately set above the market rate in order to increase productivity. B. generally a disincentive for an employee to work hard to try to keep their job. C. not a cause of unemployment. D. All of these are true.
Use the following figure to answer the question below.
The production possibilities frontier in the figure above satisfies the law of
A. zero trade-off. B. a single good production. C. zero opportunity cost. D. constant opportunity costs.
The term market mechanism refers to
A. The use of market prices and sales to determine resource allocation. B. Supply curves but not demand curves. C. The establishment of a ceiling price in a market. D. Government laws and regulations concerning how the market should operate.