Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used
Indicate whether the statement is true or false
TRUE
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Full employment corresponds to
A) equilibrium in the labor market, with actual GDP being equal to potential GDP. B) labor demand being greater than labor supply and actual GDP being equal to potential GDP. C) being at the point where the marginal product of labor equals zero. D) equilibrium in the labor market, and actual GDP exceeding potential GDP.
Which of these is not a valid reason for government intervention into mutually beneficial exchange?
a. The market system might not function at all without government protecting certain rights b. The market system produces an efficient outcome that the majority does not like c. The government might be able to undertake some activities more efficiently than the market outcome. d. The market allocation might be viewed as inequitable, so redistribution might be desired to achieve equity goals.
In economic terminology, when a resource is used to produce output it is referred to as
A) an intangible. B) a factor of production. C) a service. D) a fifth element.
If producers must receive a higher price to be induced to produce any quantity, we can conclude that
A. both supply and demand increased. B. demand decreased. C. demand increased. D. supply decreased.