Price controls will tend to cause mis-allocation of resources because the cost of production (or opportunity) does not match market prices any more.
<u>Explanation:</u>
Price controls can be as high and low prices as possible. You can control demand and balance the market whether above or below it:
- Higher prices may reduce food costs and make it easy to buy, but the downside of high prices can lead to a decline in supply and a shortage.
- The recipients of prices may increase the minimum prices..
- In farming, they were used to increase farmers' incomes. Minimum prices however lead to surplus supplies, which mean the government must buy surpluses.
Answer:
U.S. dollar falls.
Explanation:
Comparative advantage is defined as the ability of a nation to produce a good or service at lower cost than other countries that also produce the good. This is the basis of international trade because countries tend to specialise in producing the products in which they have comparative advantage, while importing those in which they do not have comparative advantage.
If the United States has lost comparative advantage in an industry. To regain it if the US dollar loses value, the wages in the United States will be lower than those in other countries. The relatively lower wage will help the United States regain competitive advantage.
Answer:
Option A is correct
Explanation:
The reason is that the control of the financial asset is not delivered to the investor as the investment is more than one companies and management of investments in a number of companies to diversify the income arising from these investments. Option B is not the definition of foreign direct investment. It is the definition of Portfolio investments. Option C is also incorrect because it is partially correct because the portfolio investment includes selling of financial assets too.