In an economy with no government and no international trade, consumption expenditures will be less than the total value of goods and services when
A. saving is zero.
B. investment is zero.
C. people barter rather than use money in making exchanges.
D. people save some of their income.
Answer: D
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The division of productive activities among persons and regions so that no one individual or area is totally self-sufficient is known as
A) advantage-taking. B) comparative value. C) specialization. D) outsourcing.
Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is
a. equally elastic b. unitary elastic c. more elastic d. less elastic e. not a factor in the cost of airline tickets
A government payment that supports a business or market:
a. subsidy b. supply schedule c. law of supply d. elasticity of supply e. excise tax
If the government required the actual market price to be fixed at $6 per unit in,
Shifts of Supply and Demand
A. A binding or effective price ceiling would result. B. A nonbinding or noneffective price ceiling would result. C. A binding or effective price floor would result. D. The market would reach equilibrium.