Refer to the below graph of the market for wheat. The government adopts a price support program for wheat, and supports the wheat price at P2. As a result of this price support program:
A. There will be a shortage of wheat in the amount of AB
B. There will be a surplus of wheat in the amount of Q1Q2
C. There will be a surplus of wheat in the amount of Q0Q2
D. Wheat farmers will receive less total income than if there were no price support program
B. There will be a surplus of wheat in the amount of Q1Q2
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The most frequently reported price index is ________
A) the consumer price index (CPI) B) the gross domestic product (GDP) deflator C) the personal consumption expenditure (PCE) deflator D) chain weighted GDP E) the interest income deflator
Which of the following is not an example of a commonly tax-funded program?
A. Public education. B. Highways. C. Housing to those in need. D. Oil and gas production.
Which of the following theories states that people who are highly risk-averse are less likely to engage in high-risk activities?
a. The theory of moral hazard b. The theory of adverse selection c. The propitious selection theory d. The death spiral theory
Which of the following best describes the production function?
(a) TP = (Land, Labour, Capital, Savings). (b) TP = f (Land, Labour, Capital, Savings). (c) TP = (Land, Labour, Capital, Enterprise). (d) TP = f (Land, Labour, Capital, Enterprise).