Creating a Market That Was Previously "Missing

question 54

Multiple Choice

Creating a market that was previously "missing":

• A) redistributes surplus from buyer to seller.
• B) creates more total surplus.
• C) redistributes surplus from seller to buyer.
• D) redistributes surplus from one market to the one that was previously missing.

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Definitions:

Income Effect

The relationship between income fluctuations in an individual’s or economic environment’s finances and its influence on the quantity of goods or services demanded.

U.S. GDP

The total market value of all final goods and services produced within the United States during a specific time period.

Farm Outputs

The total variety and quantity of goods produced by farming activities, including crops, livestock, and other agricultural products.

Dairy Margin Protection Program

A federal program in the United States designed to protect dairy producers when the margin between milk prices and feed costs falls below a certain level.