An effective price floor will:
A. force some firms in this industry to go out of business.
B. clear the market.
C. result in a product shortage.
D. result in a product surplus.
Answer: D
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The Doha Round of international trade talks concluded in 2007 with the successful establishment of a general free trade agreement between developing and developed nations
Indicate whether the statement is true or false
Consumers do not prefer gifts-in-kind to cash gifts
What will be an ideal response?
Having an absolute advantage in the production of a good implies that a country
a. should specialize in the production of the good b. is able to produce the good with fewer resources than another country c. should not specialize in the production of the good d. also has the comparative advantage in the production of the good e. cannot have an absolute advantage in the production of the good
Corrective taxes cause deadweight losses, reducing economic efficiency
a. True b. False Indicate whether the statement is true or false