When a government imposes a price floor on a good that is above the market equilibrium price

A) a surplus will develop.
B) a shortage will develop.
C) producers will increase their sales price.
D) consumers will increase their demand for the good.


A

Economics

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Refer to Figure 13-2. Ceteris paribus, a decrease in the labor force would be represented by a movement from

A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.

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Considering its effects through income, the price level, and interest rates only, contractionary fiscal policy causes the value of a country's currency to:

A. move unpredictably. B. rise. C. remain unchanged. D. fall.

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The distance between the TC and the TVC curve

A) is constant. B) decreases as output increases. C) increases as output increases. D) is the MC curve.

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The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except:

A.  Improved product quality B.  Added leisure C.  Debasement of the environment D.  More stress-free lifestyle

Economics