If a country produces only two goods, then it is not possible to ...

[jerry coleman]

If a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods.
 
  Indicate whether the statement is true or false

Question 2

What is the difference between a price ceiling and a price floor? Compared to the competitive equilibrium price, where must price ceilings and price floors be set to have an effect on the market.
 
  What will be an ideal response?

[ladyjames123]

Answer to Question 1

TRUE

Answer to Question 2

A price ceiling is a legally determined maximum price that sellers may charge for a good or service. A price floor is a legally determined minimum price that sellers may receive for a product or service. To have an effect on a market, price ceilings must be set below the competitive equilibrium price, and price floors must be set above the competitive equilibrium price.