A Surplus of Wheat

question 19

Multiple Choice

A surplus of wheat:

• A) is impossible if people are hungry.
• B) is impossible if the price of wheat is below equilibrium.
• C) will result when the quantity demanded exceeds the quantity supplied at the current price.
• D) is unlikely to cause any change in the price of wheat.
• E) indicates that the problem of scarcity of wheat has been solved.

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Definitions:

Government Outlays

Government outlays refer to the total amount of money spent by the government, including spending on goods and services, transfer payments, and debt interest. This term is synonymous with government spending but emphasizes the outflow aspect.

Government Expenditures

The total amount spent by the government for its operations, projects, and policies, including infrastructure, public services, and social security payments.

Government Revenues

The total income received by the government from taxes and non-tax sources.

Transfer Payments

Payments made by the government to individuals, such as social security or unemployment benefits, that do not correspond to a current supply of goods or services.