Suppose the government does not provide an incentive payment to producers under a production quota policy, and the amount that may be produced and sold by firms is limited by law in order to raise the market price to the support price
Do producers still gain surplus value under this version of the production quota policy? A) Yes, they would always achieve a larger producer surplus under this version of the policy
B) Yes, as long as the surplus value gained from consumers exceeds the amount of producer surplus lost from production quantities that are no longer produced
C) No, they would always face a decrease in producer surplus without the government incentive payment
D) No, the change in producer surplus is always negative due to the gains achieved by consumers
B
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A demand curve is described as perfectly elastic if
A. any quantity can be sold at a given price. B. the same quantity is sold regardless of price. C. neither price nor quantity demanded ever change. D. only price can change.
On ________, October 19, 1987, the stock market experienced its worst one-day drop in its entire history with the DJIA falling by 22%
A) "Terrible Tuesday" B) "Woeful Wednesday" C) "Freaky Friday" D) "Black Monday"
In the United States, monetary policy is determined by
A) the Federal Reserve. B) the president. C) private citizens. D) the Treasury Department.
Which of the following occurs when there was a shortage of supply in a centrally planned economy?
a. Central planners reduced the amount supplied to each sector b. Shoppers waited in long lines at retail stores c. Store shelves were empty d. Shop operators expected "tips" or bribes for supplying scarce consumer goods e. All of the answers are correct