In an effort to prevent hunger in their nation,a government might respond to rising food prices by:
A) setting a price ceiling on basic food necessities.
B) setting a price floor on basic food necessities.
C) demanding neighboring countries provide free food to their citizens.
D) setting a minimum quantity each farmer must provide free of charge.
Correct Answer:
Verified
Q19: A type of public policy that might
Q20: Normative analysis:
A)involves the formulation and testing of
Q23: One way to ensure all producers benefit
Q25: An effective price ceiling:
A)must be set above
Q26: Because a price floor causes:
A)a shortage,rationing must
Q27: An effective price floor:
A)must be set above
Q28: A tax on sellers has what effect
Q39: Governments tend to set price ceilings:
A) to
Q54: One way to allocate the scarce good
Q91: A tax on sellers:
A) causes equilibrium price
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