Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price?
A) consumers, who purchase more units of the product than they did before the price support program was implemented
B) taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place
C) producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues
D) the government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program
C
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Which of the following is a fixed payment loan?
A) a home mortgage B) a U.S. Treasury bill C) a U.S. Treasury note D) a zero-coupon bond
The regulation of natural monopolies is common in which of the following industries?
A. Electricity B. Tobacco C. Oil D. Alcohol
Whenever a nation's currency is expected to depreciate because of various market conditions, the following situation exists regarding its forward rate for another currency:
a. there is a forward discount from the spot rate by the rate of depreciation. b. there is a forward premium from the spot rate by the rate of depreciation. c. there is no difference between the spot and forward rates. d. there is no predictable relationship between the spot and forward rates
The data for the U.S. show that investment and profits
A) have a strong negative relationship. B) are positively related during recessions, and negatively related during expansions. C) move independently. D) are positively related during expansions, and negatively related during recessions. E) none of the above