If an agricultural price support keeps a price above the equilibrium market price,
A. There will be redistribution of income from the government to consumers.
B. More resources will be devoted to agriculture than are optimal.
C. There will be positive market feedback leading to even higher prices.
D. Shortages of agricultural products will result.
Answer: B
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As the result of an increase in the price of capital, the demand for labor would ________, the supply of labor would ________, and the quantity of labor hired would ________
A) decrease; remain the same; decrease B) decrease; decrease; decrease C) decrease; increase; remain the same D) increase; remain the same; decrease
If a product is a normal good, then its income elasticity of demand is
A) zero. B) positive. C) negative. D) indeterminate. E) greater than 1.
State the law of supply and explain it
What will be an ideal response?
The "pay or play" approach means that
A. If the government does not pay off the deficit, deficit reduction will become the top political-economic priority. B. If businesses do not pay for training, workers have no obligation to work for them. C. If employers do not provide training activities, they must pay the government to do so. D. Businesses must go along with the administration or pay the consequences.