Which of the Following Statements Is Always True

question 59

Multiple Choice

Which of the following statements is always true?

• A)​An increase in price will lead to an increase in producer surplus along a supply curve.
• B)​An increase in price will lead to an increase in consumer surplus along a demand curve.
• C)​A price ceiling will lead to an increase in consumer surplus.
• D)​A price floor will lead to an increase in consumer surplus.

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Definitions:

Twin Deficits

The situation occurring when a country has both a current account deficit and a fiscal deficit, indicating excessive spending.

Trade Deficit

A situation where a country imports more goods and services than it exports, resulting in a negative balance of trade.

Gold Standard

An economic arrangement where paper money in a country directly mirrors the value of gold.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and leading to significant geopolitical changes.