Question

In the diagram, what will happen if the government sets the price for potatoes at point B?

Answer 1

There will be a shortage of potatoes.

There will be a surplus of potatoes.

The price of potatoes will rise to meet equilibrium.

The price of potatoes will fall to meet equilibrium.

Answer 2

@Mertsj @dusty please helpp :)

Answer 3

There will be a shortage of potatoes because the price is so low no one can make money by growing them. That is exactly what the government is doing now with health care. They are squeezing the doctor's and hospital's compensation so much they can't make money and thus are quitting.

Answer 4

ohh got it... thankss... what about this one?

***what will happen if the government sets the price for Internet access at point B?

There will be a shortage of Internet access.

There will be a surplus of Internet access.

The price of Internet access will rise to meet equilibrium.

The price of Internet access will fall to meet equilibrium.

Answer 5

What do you think?

Answer 6

i was thinking the same as last one.. shortage of internet access.... i think
(Im really bad with diagrams..)

Answer 7

Well, I can't see the diagram...I assumed it was the same as the last one.

Answer 8

yah... same diagram :)

Answer 9

Well, then...same conclusion.

Answer 10

:D (y)

Answer 11

You are hopefully learning why government price controls never work.

Answer 12

sadly not... its US economy... but i've gotten my own conclussions that the best economy is 100% free market.. with no government intervention ...

Answer 13

Use this image to answer the following question. In the business cycle phase marked “C,” economists expect the

government to act to encourage economic growth.

government to act to slow economic growth.

inflation rate to start dropping dramatically.

unemployment rate to begin rising dramatically.


I have this question too... but I'm struggling between A and C... do you know something about it?

Answer 14

I don't really know but I would probably as least consider D. Why did you rule it out?

Answer 15

mm... dont really know... im confused here... :?

Answer 16

If the Gross Domestic Product is down, there is less economic activity. I think that would translate into fewer people working. Probably could google that question and find an answer.

Answer 17

yah... thanks by the way tho :)

Answer 18

Falling GDP was not listed as a cause of unemployment at the site I consulted.

Answer 19

I would go with A. It seems that over time, rising GDP causes inflation.

Answer 20

i read some sites.. and yeah.. i tough the same.. i marked it as A.. :)
one last question... same diagram.. (Im soo bad with diagrams :/ )


Inflation is low but the unemployment rate is the highest seen in several years. Economists report signs that the economy is beginning to improve. The economy is likely in

recession.

expansion.

a peak.

a trough.

Answer 21

@Mertsj

Answer 22

@dusty @KeganMoore please help.. :)

Answer 23

maybe expansion?
we haven't peaked yet, and a trough is the bottoming point.
but we are also in a recession, i would say either Expansion or Recession

Answer 24

I would say recession.