Refer to Figure 9.5. If the government establishes a price floor of $2.50, consumer surplus will
A) fall by $50.
B) fall by $150.
C) remain the same.
D) rise by $50.
E) rise by $150.
B
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When consumer spending is high, the economy usually is in a(n)
A. depression. B. growth stage. C. inflationary period. D. recession.
Market clearing prices in a market system act as
A. a way for producers to advertise. B. a legally determined rationing device. C. a direct measure of resource costs. D. a signaling device.
According to the Application, Singapore's gross savings rate is about ________ percent, which is one of the ________ in the world
A) 84; highest B) 27; lowest C) 48; highest D) 48; lowest
An economic system is
A) the universe of all resources. B) a way to create new resources. C) a mechanism to allocate scarce resources. D) an organization that generates profits.