Suppose the Average Income of a Citizen of Poland Is

question 58

Multiple Choice

Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania.You might conclude that

• A)Polish firms are faced with stricter government regulations than Romanian firms.
• B)total income is divided among fewer workers in Poland since it has a smaller labor force than Romania.
• C)Romania's climate allows for longer growing seasons and therefore Romania can produce large quantities of grain and other crops.
• D)productivity in Poland is higher than in Romania.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, commodity, or service.

Price Floor

A government or regulatory imposed minimum price for goods or services, intended to prevent prices from falling too low.

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically referring to profit or a budgetary surplus.

Shortage

A market condition in which the demand for a product exceeds its supply at a particular price.