Refer to the table below. If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total support payments to producers would be:
Answer the question based on the following supply and demand schedules in units per week for a product.
A. $3,000 per week
B. $3,500 per week
C. $4,000 per week
D. $2,500 per week
C. $4,000 per week
You might also like to view...
Which component of consumption spending is the greatest in a typical economy?
A) services B) nondurable goods C) durable goods D) new housing
If consumption increases,
A) the SRAS curve will shift rightward, which will push the price level up. B) the SRAS curve will shift leftward, which will push the price level up. C) the AD curve will shift leftward, which will push the price level down. D) the AD curve will shift rightward, which will push the price level up.
An increase in government spending
a. increases the interest rate and so investment spending increases. b. increases the interest rate and so investment spending decreases. c. decreases the interest rate and so increases investment spending increases. d. decreases the interest rate and so investment spending decreases.
Recall the Application. The idea regarding the relationship between tax rates and tax revenues proposed by Yu Juo is very similar to the idea proposed by economist
A) Arthur Laffer. B) Adam Smith. C) Ben Bernanke. D) David Ricardo.