Question

Paragraph Styles True or false 1- Minimum wage is a good example of a price floor. 2- Domestic producers typically benefit when their government decrease tariff 3- Minimum wage laws typically result in a shortage 4 GATT was created during the Clinton ad. 5- A corrective tax is good example of command control policy. Multiple choice A non-binding price floor can be seen on graph as a: a. Vertica line to the left of the equilibrium b. Horizontal line below the equilibrium c. Horizontal line above equilibrium d. Vertical line to the right of the equilibrium e. None of the above The social value curve can be seen on graph: a. b. c. d. e. Below the demand curve Above the supply curve Below the supply curve Above demand curve None of the above

Answer 1

1. True
Minimum wage is an example of a price floor in economics as the price floor is at the minimum price at which a good can be sold and it is usually set by the government.

2. True
Tariffs play a role in the production capacity of the producers and the buying capacity of the consumers. If the government decreases the tariff for the productions of the goods and on its sale then definitely domestic producers will be benefitted as they can make more profits and also they can produce more with the same capacity due to the government help.

3.False
It is not necessary that there will be labor shortage always due to minimum wages. If the labor supply is more than demand then there will be increase in minimum wages while if the demand is more than supply then only there will be shortage.

4. False
GATT was created by 23 nations in 1947 and not during the Clinton Ad.

5.True
Corrective tax is made to make the private incentives to be liable to society's interests and make them more answerable. It makes the economy move towards a more effective allocation of resources which will benefit the society as a whole. Thus, the corrective tax is a good example of command control policy.

C. Horizontal line above the equilibirum

Non Binaling Price Cei Puite cou

D.Above the demand curve

Soial Value Cuve Sufp So cial valse Den