If the Population of Country a Is 400 and the Real

question 104

Multiple Choice

If the population of Country A is 400 and the real GDP of Country A is $200,000 , then the GDP per capita in country A is:

• A) $50.
• B) $500.
• C) $80,000,000.
• D) $8,000,000.

---

Definitions:

Price Floor

A government or regulatory-imposed minimum price below which a good or service cannot legally be sold, intended to protect producers.

Binding Price Floor

A government-imposed price control that sets a minimum price for a good or service, which is above the equilibrium price, causing a surplus.

Excess Supply

A situation in a market where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at a current price, leading to potential downward pressure on prices.

Market Outcome

The result of interactions between buyers and sellers in a market that determines the quantity sold and the price at which it sells.