An agricultural price support
A) will create a surplus in the relevant market, assuming the price support is above equilibrium price.
B) will create a shortage in the relevant market, assuming the price support is above equilibrium price.
C) is an example of a price floor.
D) will lead to greater total revenue for farmers if demand (for the product) farmers sell is inelastic between the equilibrium price and the price support (and assuming the price support is above equilibrium price).
E) a, c, and d
E
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Government printing of money to finance government spending is called
A) irresponsible. B) an open-market purchase. C) sterilization. D) seigniorage.
The age-earnings profile for most people indicates
A) earnings rise continually until a person retires. B) earnings initially decline and then rise continually until retirement. C) that when you adjust for inflation, earnings are constant throughout the entire workplace experience. D) earnings rise until the age of about 50 and then begin to fall until retirement.