Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price?
A) consumers, who purchase more units of the product than they did before the price support program was implemented
B) taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place
C) producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues
D) the government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program
C
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Shortages occur when
a. many people are unemployed. b. interest rates go up. c. people have trouble supplying the goods and services at current prices. d. the United States imports more than it exports.
Under socialism, which of the following industries would probably be owned by the government?
a. Steel. b. Electricity. c. Agriculture. d. All of these.