Author Question: It has been generally observed that most trade in the world occurs between a developed and a ... (Read 67 times)

Sufayan.ah · **on:** Jun 30, 2018

It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations.
a. True
b. False
Indicate whether the statement is true or false

Question 2

How do price controls undermine the market as a communication device?

peilian · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

False

Answer to Question 2

The imposition of price controls (which restrict prices above or below market clearing prices) sends incorrect signals to both consumers and producers about the relative scarcities of goods and services.