QUESTION 40

In a market economy, if the market supply of a product decreases relative to its demand, the product's price will

A. fall.

B. rise.

C. be unchanged.

D. fall and then rise.

E. rise and then fall.

QUESTION 41

Research suggests that as the minimum wage is increased by 10%, the associated increase in the teenage unemployment rate is approximately

A. 1 percent.

B. 10 percent

C. 20 percent.

D. 25 percent.

E. 30 percent.

QUESTION 42

In a mixed economy, governments may intervene in markets in which of the following ways?

A. Price ceilings

B. Minimum wages

C. Agricultural price supports

D. Both a) and b)

E. All of the above

QUESTION 43

Price ceilings may be used on a selective basis to

A. control inflation in the economy.

B. make a good cheaper to produce.

C. boost the income of firms.

D. make a good affordable to all income levels.

E. increase workers' incomes.

QUESTION 44

Price floors are often instituted for which of the following purposes?

A. To prevent inflation

B. To make goods and services accessible to all income levels

C. To increase the income of sellers

D. To increase the wages of workers

E. all of the above