Refer to the diagram for the corn market. What effect will a price support of B have on the gross income of farmers?
A. Gross income will be unchanged, although profits will rise.
B. Gross income will increase from 0MFG to 0BKL.
C. Gross income will increase from 0AJH to 0BCG.
D. Gross income will decrease from 0BCG to 0BKL.
C. Gross income will increase from 0AJH to 0BCG.
Economics
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In the figure above, the length of the double sided arrow is the
A) consumer surplus. B) deadweight loss. C) producer surplus. D) economic loss per unit. E) economic profit.
Economics
When the Fed lowers the federal funds rate, it can lead to
A) the Fed selling government securities. B) an increase in lending by banks. C) a decrease in demand deposits. D) a decrease in the quantity of money.
Economics