Category: Economics

➤ Why do governments impose price floors?
Governments set price floors to protect producers’ incomes, stabilize volatile markets, or ensure minimum wages for workers. For example, agricultural supports prevent farm income collapse and minimum wage laws aim to raise living standards. Policymakers weigh these benefits against higher consumer prices and potential surpluses.

All types of activities in a country are included in the GDP.TrueFalse
True
False

➤ How reliable are growth statistics for the 1930s Soviet economy?
Official figures emphasized physical output and often inflated achievements. Historians reconstruct trends from industrial indices, archival documents, and demographic records. These reconstructions confirm strong industrial expansion, but they leave uncertainty about overall GDP magnitudes, agricultural performance, and real living‑standards changes during that decade.

➤ Why is the statement “The ACA reduced coverage for preventive services in Medicare” false?
False. The ACA did not reduce preventive coverage in Medicare; it expanded it. The law removed many co-pays and deductibles for recommended preventive services and strengthened access to screenings, immunizations, and wellness visits under Part B. It aimed to detect disease earlier and lower long-term costs through prevention.