One impact of an import quota is to:
A. reduce both domestic production and domestic prices.
B. reduce domestic production and increase domestic prices.
C. increase domestic production and reduce domestic prices.
D. increase both domestic production and domestic prices.
Answer: D
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The rise in European protectionism helped the U.S. economy by increasing foreign demand for agricultural goods
Indicate whether the statement is true or false
Which of the following public policies is an example of a price ceiling?
A. Support prices for agricultural commodities B Minimum wage laws C Rent control program D all of the above
The theory that profits are a reward for innovation was formulated by ____________.
Fill in the blank(s) with the appropriate word(s).
If the government sets a maximum price at which a good or service can be sold, it thereby creates
A) a price floor. B) a black market price. C) a price ceiling. D) an illegal price control.