Import quotas on steel tend to result in higher quantities of steel being sold at lower prices than would be observed in the absence of a quota

Indicate whether the statement is true or false

False. The opposite is true. Quotas restrict the supply curve. This reduces quantity and raises price.

Economics

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Rent control is an example of a price floor

Indicate whether the statement is true or false

Economics

Curly told Larry about his new business venture: Curly pays Acme International $1,000 per month for supplies, works out of his apartment on his own computer and earns a monthly revenue of $1,500. Should Larry quit his job and do what Curly is doing?

A. Yes, as long as Larry has at least $1,000 in savings to get started. B. Not if Larry is earning more than $500 per month at his current job. C. Yes, as long as Larry can work out if his apartment and owns a computer. D. Not unless Larry can borrow the $1,000 monthly payment at no interest.

Economics