A market consequence of the establishment of a price floor program is that price will be:
a. too low, and an excess supply will result.
b. too low, and a shortage will result.
c. too high, and an excess supply will result.
d. too high, and a shortage will result.
e. below the market equilibrium price.
c
Economics
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If trade is consistent with the Heckscher-Ohlin (H-O) theory, then growth in a country's scarce factor of production will lead to
A. balanced growth. B. a deterioration in the country's terms of trade. C. a decreased willingness to trade. D. an increased willingness to trade.
Economics
Which of the following is the closest example of a perfectly competitive market?
A. soybeans B. gasoline stations C. fast foods D. beer
Economics