Which of the Following Government Programs Will NOT Create a Surplus

question 109

Multiple Choice

Which of the following government programs will NOT create a surplus?

• A)Farm price support payments
• B)The minimum wage law
• C)Usury laws
• D)A price floor above the equilibrium price

Recognize the concept and objectives of least-cost decisions in capital budgeting.

Understand the basic principles of pricing models and strategies.

Analyze the impact of total revenue, total cost, marginal revenue, and marginal cost on pricing decisions.

Calculate mark-up percentages in different pricing scenarios.

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Definitions:

Inflation Rate

The progression speed at which the cost of general goods and services increases, diminishing buying power over time.

Consumer Price Index

A metric tracking the average evolution over time in the expenditure of urban consumers on a designated selection of consumer goods and services.

Base Year

A specific year against which economic variables are measured and compared in indices or other economic calculations.

Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, changing over time to reflect the cost of living.