When the government implements an agricultural price support (above the equilibrium price), a surplus results and the government buys the surplus at the support price
Indicate whether the statement is true or false
True
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The government's decision to come to the aid of farmers was made, in part, because the government feared that
a. farms were becoming too large and inefficient as a result of continuous changes in farm technology b. because food prices had become so high, low-income families were unable to maintain a minimal nutritional diet c. falling farm prices would depress the farm economy and that depression would spread to other sectors of the economy d. price supports would distort farm prices e. insufficient food supplies would be produced to feed a growing population
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the quantity supplied is 2 million pounds of ground beef per year, the result is a deadweight loss represented by area:
A. ABEC. B. CEFD. C. EGH. D. BEF.
If the Herfindahl-Hirschman Index of an industry is less than 1,000, then the Antitrust Division of the Justice Department
A. considers the industry unconcentrated. B. will challenge any merger that would increase the index by over 100 points. C. considers the industry already concentrated. D. will challenge any merger that raises the index by more than 50 points.
The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.