Suppose that Firestone Tires buys raw rubber for $5,000 and then uses this to make tires it sells for $20,000 . As a result, GDP has risen by:

A minimum wage set above the equilibrium wage

A) decreases the deadweight loss in the market. B) decreases the workers' surplus because workers must spend resources looking for jobs. C) increases the firm's surplus. D) increases the market's efficiency. E) has no effect on the market.

Answer the following statement true (T) or false (F)

1) Farmers typically sell their products in highly competitive markets and buy in imperfectly competitive markets. 2) If the demand for agricultural products is inelastic, a relatively small increase in supply will cause farm prices and incomes to decline. 3) The use of price-support programs in agriculture has hastened the exodus of resources from agriculture. 4) The concept of parity has provided a rationale for government price supports for farm products.