You have responsibility for economic policy in the country of Freedonia. Recently, the neighboring country of Sylvania has cut off all exports of oranges to Freedonia. George, who is one of your advisors, says that the best way to avoid a shortage of oranges is to take no action at all. Charles, another one of your advisors, argues that without a binding price floor, a shortage will certainly
develop. Otto, a third advisor, suggests that you should impose a binding price ceiling in order to avoid a shortage of oranges. Which of your three advisors is most likely to have studied economics?
a. George
b. Charles
c. Otto
d. Apparently, all three advisors have studied economics, but their views on positive economics are different.
a
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Generally speaking, the more competitive a country's markets are, the greater are the opportunities for corruption
a. True b. False Indicate whether the statement is true or false
Which of the following is a positive economic statement?
A) The standard of living in the United States is too low. B) If the price of beef falls, a larger quantity of it will be bought. C) The government should implement a national consumption tax. D) The U.S. government should increase regulations on the banking industry.