A Military Draft The Following Questions Refer to the Accompanying Graph, Which Shows

question 74

Multiple Choice

A Military Draft

The following questions refer to the accompanying graph, which shows the supply and demand for military service where Q0 represents the quantity provided by a volunteer army and Qd the quantity provided by a draft.


-Refer to Supply and Demand.The social gain from a draft is represented by

• A) areas A + B + F.
• B) areas A + B + F - E.
• C) areas B + F.
• D) Areas A + B + C + D.

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Definitions:

Price Paid

The actual amount of money exchanged for a good or service.

Supply and Demand

Fundamental economic model describing how prices and quantities of goods and services are determined in a market based on the relationship between the quantity supplied and the quantity demanded.

Price Floor

A government or regulatory minimum price set for a commodity, below which it cannot legally be sold.

Farm Incomes

The earnings from agricultural activities that farmers receive, including profits from selling crops and livestock.