By Reducing Available Supplies of a Product, an Export Embargo

question 191

True/False

By reducing available supplies of a product, an export embargo leads to falling prices in the target nation and increasing target-nation consumer surplus.

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Definitions:

Top Award

A top award is the highest honor or recognition given in a competition, field, or industry.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to the positive feedback between belief and behavior.

Attribution

The process by which individuals explain the causes of their own and others' behavior, typically by ascribing behavior to internal dispositions or external situations.

Primary Drive

A fundamental biological need that motivates behavior, such as hunger or thirst.