One way to ensure all producers benefit from a price floor is to:
A. ration a certain quantity per producer.
B. ration a certain quantity per consumer.
C. give a government guarantee to buy all surplus.
D. All of these are examples of ensuring all producers benefit using non-price methods.
Answer: C
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for coffee. What happens in this market if buyers expect the price of coffee to rise?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
The excess of total credits over total debits in the current and private capital accounts is called the
A) BOP deficit. B) BOP surplus. C) official settlements account surplus. D) official settlements account deficit.
A strategy is dominated if:
A. there are no other strategies that yield higher payoffs, regardless of others' choices. B. there is some other strategy that yields a strictly higher payoff regardless of others' choices. C. there is some other strategy that yields a strictly higher payoff in some circumstances and that never yields a lower payoff regardless of others' choices. D. there is some other strategy that yields a strictly higher payoff in some circumstances and may yield a lower payoff, depending upon other players' choices.
If labor is the only variable input, an increase in the quantity of labor:
a. does not have any effect on the quantity of output. b. causes the output to increase initially at a diminishing rate and then at an increasing rate. c. causes the output to increase at a constant rate till the last worker is hired. d. causes the output to increase initially at an increasing rate and then at a decreasing rate. e. causes the output to decrease at a constant rate till the last worker is hired.