A price floor set below the equilibrium price will cause which of the following?
A) an increase in demand
B) a shortage
C) a surplus
D) none of the above
D
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When the government sets a price floor which is below the equilibrium price
A. a price ceiling will follow. B. a shortage will develop. C. a surplus will develop. D. the equilibrium price will be maintained.
The national security argument is used by those who assert they want to
A) increase imports as a way of strengthening their country. B) limit exports to control the flow of technology to third world nations. C) limit imports that compete with domestic producers important for national defense. D) limit all imports. E) increase exports as a way of earning money to strengthen their country.
Labor is available at a wage of $10 . The last worker hired by Cal's Corn Farm added 20 ears of corn, which Cal has priced at four ears for $1 . What advice would you give Cal?
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. 
If the government provides a subsidy of $500 per ton, then consumer surplus will be ________ per day.
A. $4,000 B. $8,000 C. $9,000 D. $1,000