An argument against subsidy use is that

It prevents progress from occurring.

Which type of farm is most likely to receive a government farm subsidy?

Farms with incomes less than $1.25 million

According to a study cited by Stossel, the more likely a community received farm aid, the ...

more likely they lost population

For which kinds of goods/services should the government establish a price ceiling for?

Those that are essential but too expensive for some.

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Economics Market Equilibrium

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Market Equilibrium Changes

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Questions 15

Answers

1
What is it called when the government mandates minimum wage at $9.45 hour?
A price floor
A price ceiling
A regulation
A subsidy
2
What happens to market equilibrium when demand drops and shifts to the left?
Price decreases and quantity increases
Price and quantity decreases
Price increases and quantity decreases
Price and quantity increases
3
A price floor results in
Excess demand
market equilibrium
Excess supply
4
What market effects does government regulations have on equilibrium?
Increases quantity supplied
Increases quantity demanded
Increases prices
Decreases prices
5
Why do you think farmers are paid to not farm?
Keep prices low
Keep prices high
enable Americans to have a higher income effect.
To shift the supply curve to the right
6
Mandating car seat latches in U.S. automobiles is an example of
Government regulations
Government subsidies
Laissez Faire
Ceteris Paribus
7
What is it called when the government sets prices below market equilibrium?
Equilibrium
Price Ceiling
Regulations
Price Floor
8
An argument against subsidy use is that
It prevents progress from occurring.
It gives businesses support during difficult times
It causes goods and services to be made more expensive.
It creates excess supply which creates shortages
9
Which type of farm is most likely to receive a government farm subsidy?
Those hit by a recession
Farmers with incomes below $35,000
Farms with incomes less than $1.25 million
Small Farmers
10
Politicians that support farm subsidies feel they are _____ for farmers.
opportunity costs
Price ceilings
safety nets
regulations
11
When did farm subsidies begin in the United States?
During the Civil War
During World War II
During the Industrial Revolution
During the Great Depression
12
What is the name of the unique point at which supply and demand meet?
Supply Shock
Excess Demand
Market Equilibrium
Ceteris Paribus
13
According to a study cited by Stossel, the more likely a community received farm aid, the ...
more likely they exanded business growth
more likely they expanded job opportunities
more likely they lost population
14
For which kinds of goods/services should the government establish a price ceiling for?
Luxury Items
Those that are essential but too expensive for some.
Raw materials used in manufacturing materials.
Non-durables found in the snack aisle.
15
Which industry is least likely to receive a government subsidy?
College Education
Agriculture
Snackfoods
Renewable clean energy sources

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