Total Surplus in a Market Will Increase When the Government

question 102

Multiple Choice

Total surplus in a market will increase when the government

• A)imposes a tax on that market.
• B)imposes a binding price floor on that market.
• C)removes a binding price ceiling from that market.
• D)None of the above is correct.

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Definitions:

Electromagnetic Induction

The phenomenon where an electromotive force (EMF) is induced in a closed circuit by a change in the flux of magnetic field.

Lenz's Law

A principle in electromagnetism stating that an induced electric current will flow in a direction such that it opposes the change in magnetic flux that produced it.

Exponential Rate

A rate of growth in which the increase occurs in a manner proportional to the current amount, often seen as rapid growth.

Hypotenuse

The longest side of a right triangle.