Directions: Choose the Best Answer Based on the Information You

question 8

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter One. Verbs that are ____________ tell what the subject is doing and are a better choice than passive verbs.

• A) active
• B) colorful
• C) pleasant
• D) none of the above

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Definitions:

Price Floor

A price floor is a government- or authority-set minimum price below which a particular good or service cannot legally be sold, aiming to prevent prices from falling too low.

Widgets

A generic term commonly used to refer to an unspecified, fictional product used in examples and economic theory.

Price Floor

A minimum price set by the government for certain goods and services that cannot legally be lowered, often above the equilibrium price.

Market Supply

Market supply represents the total quantity of a particular good or service that all producers are willing and able to sell at different price levels in a given period.