As Compared to the Market Clearing Price, the Total Amount

question 228

Multiple Choice

As compared to the market clearing price, the total amount of consumer surplus and producer surplus is

• A) greater for a government-imposed price floor that is higher than that market clearing price.
• B) greater for a government-imposed price ceiling that is lower than that market clearing price.
• C) the same as a government-imposed price floor that is higher than that market clearing price.
• D) smaller for a government-imposed price ceiling that is lower than that market clearing price.

---

Definitions:

ATMs

Automated Teller Machines, devices that allow bank customers to perform financial transactions without the need for a branch representative.

Bank Tellers

Employees of a bank who deal directly with customers, handling transactions, cash checks, accept deposits, and provide account information.

Bank Branches

Physical locations of a bank where customers can perform various financial transactions, such as deposits, withdrawals, loan applications, and account inquiries.

Employment

The condition of having paid work or the number of people who are currently employed in the economy.