If the Government Imposes an Effective ________,Output Decreases and ________

question 229

Multiple Choice

If the government imposes an effective ________,output decreases and ________ increases.

• A) price support; consumer surplus
• B) price floor; consumer surplus
• C) price support; total revenue
• D) price floor; marginal benefit to consumers
• E) price ceiling; efficiency

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Definitions:

Maintenance-Margin

The minimum amount of equity that must be maintained in a margin account to continue holding positions, preventing a margin call.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.

Margin Deposit

A margin deposit is an initial sum deposited to cover potential losses when borrowing capital for investing, typically in a margin account for trading securities.

Open Interest

The number of futures contracts outstanding.