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If the index of prices paid by farmers is 140 and the index of prices received by farmers

If the index of prices paid by farmers is 140 and the index of prices received by farmers is
                            140, then the parity price ratio would equal

a.100

b.80

c.120

d.140

e.0

 

124.              A price floor in the cotton market will result in an excess supply unless

a.the excess demand for cotton is reduced to zero

b.it is immediately followed by a shift to the right in the demand curve that reduces the
excess supply to zero

c.the excess supply of cotton is equal to the excess demand for cotton at the floor price

d.the supply is immediately stimulated to reduce the excess demand that results from
the excess supply

e.the quantity demanded shifts to the right

125.              Suppose that a $5.50 price floor is imposed on a corn market whose equilibrium price
                            was $4.50 per bushel. Which of the following will happen?

a.There will be an excess demand of corn at $5.50.

b.The profits of all corn farmers will increase by $1 per bushel.

c.There will be an excess supply of corn at $5.50.

d.The equilibrium price of corn will fall below $4.50 per bushel.

e.The excess supply at $5.50 will fall to zero as the equilibrium price increases to
$5.50.

126.              A good example of a price floor is

a.rent controls on rental apartments in major cities

b.the cheapest tickets to concerts

c.the minimum wage law

d.food stamps provided to low-income people who use them to purchase specific basic
foods at retail stores, such as corner groceries and supermarkets

e.discount airfares

127.              Auction markets usually

a.cause a shortage because there is more than one bidder for an item

b.cause a surplus because auctions seldom sell off all the items at the auction

c.fail to clear the market

d.arrive at an equilibrium price within minutes for each item auctioned

e.are unfair and for this reason have been regulated by government

128.              The pre-1973 farm price support program resulted in a(n)

a.substantial increase in the number of farmers

b.substantial increase in the number of farms

c.excess demand for farm goods

d.excess supply of farm goods

e.major benefit to consumers of farm goods

129.              In summary, many of the government’s farm programs are an attempt to shift the

a.demand curve for farm goods to the right

b.demand curve for farm goods to the left

c.supply curve for farm goods to the left

d.supply curve for farm goods to the right

e.supply and demand curves for farm goods to the right

Dec 10 2019 View more View Less

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