A voluntary exchange of products means that
a. if one nation gains from a swap, the other nation must necessarily lose.
b. each country must do its best to act to the disadvantage of its trading partners.
c. both parties must gain (or expect to gain) from the transaction.
d. both parties must lose owing to the transaction costs involved.
c
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The price elasticity of supply is always a positive value because
i. there is a direct relationship between the price and the quantity supplied. ii. as the equilibrium price increases, the equilibrium quantity also always increases. iii. buyers are willing to pay a higher price for larger quantities. A) i only B) ii only C) iii only D) i and ii E) ii and iii
During a recession, the percentage workers who are part time for economic reasons
A) increases more rapidly than the percentage of part-time workers. B) decreases more rapidly than the percentage of part-time workers. C) increases proportionately with the percentage of part-time workers. D) decreases proportionately to the percentage of part-time workers. E) does not change even though the percentage of part-time workers increases.
Other things equal, if the government increased the quantity of pollution rights to be sold,
a. pollution would not be affected b. the price of pollution rights would rise, and the amount of pollution would decrease c. the price of pollution rights would fall, and the amount of pollution would decrease d. the price of pollution rights would fall, and the amount of pollution would increase e. the price of pollution rights would rise, and the amount of pollution would increase
A free-rider problem exists for any good that is not
a. rival in consumption. b. a private good. c. free. d. excludable.