The purchasing power parity method of comparing income levels across countries
What will be an ideal response?
calculates the cost of purchasing a common bundle of goods in each country and then uses this price index to convert each country's income to a common currency.
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Why does a rent ceiling create an inefficient and unfair outcome in the housing market?
What will be an ideal response?
The coordination task of dividing products among consumers is a problem of
a. output selection. b. production planning. c. distribution. d. market segmentation.
In recent years, the number of private, for profit, _________________ has increased dramatically.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements is correct? Most economists
A. think that protectionism is a vital and necessary component in a nation's economic policy. B. prefer to let the market forces of supply and demand solve trade imbalances. C. believe that tariffs and quotas are efficient and effective measures. D. believe product standards, export subsidies, and exchange controls are desirable trade practices, but quotas and tariffs only provoke retaliation.