If a price floor is removed, which of the following would be a result?
A. The elimination of surpluses
B. Problems with the disposal of goods
C. Disguised discounts to sell additional goods are offered by sellers
D. Overinvestment in the industry
Answer: A
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Explain how the aggregate demand and aggregate supply model can be made more dynamic
What will be an ideal response?
Economic growth can be pictured in a production possibilities curve diagram by
A) shifting the production possibilities curve in. B) shifting the production possibilities curve out. C) making the production possibilities curve straighter. D) moving from a point inside the production possibilities curve to a point on the curve.
Suppose the federal government increases the unemployment benefits financed by higher income taxes. In this case, which of the following is likely to occur?
a. An increase in the equilibrium real GDP b. A redistribution of disposable income from the employed to the unemployed c. An increase in the interest rate d. An increase in the discount rate charged by the Central Bank e. An increase in the income of the rich and a decrease in the income of the poor
If a federal agency requested funds to build a dam on an Idaho river to irrigate nearby farmland used for growing potatoes, the most active support for the project probably would come from
a. potato farmers who own land that wouldn't be irrigated by the project. b. taxpayers who would pay for the project. c. consumers of potatoes who might benefit from an expansion in supply and slightly lower potato prices. d. potato farmers who own the land to be irrigated.