1.

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. Chico, who is one of your advisors, suggests that you should impose a binding price ceiling in order to avoid a shortage of oranges. Zeppo, another one of your advisors, argues that without a binding price floor, a shortage will certainly develop. Harpo, a third advisor, says that the best way to avoid a shortage of oranges is to take no action at all. Which of your three advisors is most likely to have studied economics? O Harpo O Apparently, all three advisors have studied economics, but their views on positive economics are different. O Chico O ZeppoThere are several criticisms of the minimum wage. Which of the following is not one of those criticisms? O The minimum wage often hurts those people who it is intended to help. 0 The minimum wage results in an excess supply of lowskilled labor. 0 The minimum wage prevents some unskilled workers from getting needed onthe-joh training. 0 The minimum wage fails to raise the wage of any employed person. The Earned Income Tax Credit is an example of (j a rent subsidy. O a price ceiling. O a wage subsidy. O a minimum-wage law