b. the demand has shifted to the right less than the supply has shifted to the right
2. The agricultural price support program is an example of
b. a price floor
3. If there is a price floor, there will be
b. surpluses
4. If there is a price ceiling, there will be
a. shortages
5. If there is a price ceiling, which of the following is NOT likely to occur?
d. sellers providing goods for free that were formerly not free
6. The goal of a pure market economy is to best meet the desires of
a. consumers
7. In a pure market economy, which of the following is a function of the price?
I. provide information to sellers and buyers , II. provide incentives to sellers and buyers
c. both I and II
8. In a market system, sellers act in ____________ interest , but this leads to behaviors in ____________ interest.
b. self; society’s
9. The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point:
c. The marginal physical product falls
10. Why is the law of diminishing marginal returns true?
c. limited capital