Exports from and imports to the U.S. were important to growth in the U.S. between 1790 and 1860 because
(a) exports to other countries expanded the market base for U.S. manufacturing goods.
(b) they supported the U.S. economy during a time in which it used more agricultural goods
and crude materials than it produced.
(c) they helped the U.S. and its trading partners gain wealth through international trade of those goods and services in which each produced at a comparative advantage.
(d) they contributed to all of the above.
(c)
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Criteria for rationing goods and resources must be established because of
a. the law of comparative advantage. b. the use of capitalism as a form of economic organization. c. the inability of politicians to develop efficient forms of economic organization. d. scarcity imposed by nature.
Taxes cause deadweight losses because they
a. lead to losses in surplus for consumers and for producers that, when taken together, exceed tax revenue collected by the government. b. distort incentives to both buyers and sellers. c. prevent buyers and sellers from realizing some of the gains from trade. d. All of the above are correct.
Which statement is false?
A. The substitution effect means that you trade away leisure time for more money. B. The income effect means that you trade away some money for more leisure time. C. Both statements are true.
Stephenie can tell if her car has been fixed or not-it works, or it doesn't-but she cannot tell how it was fixed. The car repair is a(n)
A. experience good. B. credence good. C. luxury good. D. search good.