Author Question: When the federal government installs a price support program that requires the government to ... (Read 107 times)

yoooooman · **on:** Jul 1, 2018

When the federal government installs a price support program that requires the government to purchase all of a good not bought in the private economy at the support price, the impact on total welfare is the

A) change in consumer surplus.
B) change in consumer surplus + the change in producer surplus + the cost to government.
C) change in consumer surplus + the change in producer surplus - the cost to government.
D) change in consumer surplus + the change in producer surplus.

Question 2

Which of the following is NOT a reason for average costs to fall according to the learning curve?

A) Workers accomplish tasks more quickly after doing the task a few times.
B) Managers schedule more efficiently over time.
C) Engineers determine more accurately what tolerances can be used.
D) Suppliers may become better able to produce the exact inputs the firm needs.
E) Competing firms leave the industry as the learning firm becomes more efficient.