When the government implements a price support program:
A. it may end up buying a lot of the good, for which it has little or no use.
B. the goal is to increase the market price of the good.
C. the deadweight loss created can be larger than that created by a price floor.
D. All of these occur as a result of a price support program.
D. All of these occur as a result of a price support program.
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NAFTA benefited Canadian consumers because:
a. of higher wages and more travel opportunity. b. of lower wages but also lower taxes. c. of lower prices but lower quality. d. of lower prices and increased variety.
The consumer price index (CPI) was 180 for 2009 when using 1995 as the base year (1995 = 100). Now suppose we switch and use 2009 as the base year (2009 = 100). What is the CPI for 1995 with the new base year?
A. 111.2 B. 18.0 C. 55.6 D. 80.0
How much is the MPC?
