A government will create a surplus in a market when it:
A. Sets a price ceiling above the equilibrium price
B. Sets a price floor above the equilibrium price
C. Sets a price floor below the equilibrium price
D. Sets a price ceiling below the equilibrium price
B. Sets a price floor above the equilibrium price
You might also like to view...
The marginal product of labor (MPL) can be calculated from the following ________
A) the labor share of income and the average output per unit of labor B) the labor share of income and average labor per worker C) output and labor D) the labor share of income and output E) none of the above
In a fixed exchange rate system
A) market forces and the country's stock of gold determine its exchange rate. B) a central bank affects the value of a currency by changing its foreign exchange reserves. C) market forces play a role in determining the fixed value of a currency. D) the International Monetary Fund determines exchange rates.