If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then normative analysis would conclude that:
A. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
B. the policy was ineffective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
C. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus lost by consumers through higher prices.
D. there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome.
D. there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome.
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An increase in technology ________ potential GDP and ________ aggregate supply
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; does not change
Gains from trade means that all trading nations must be made better off
Indicate whether the statement is true or false