Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?
A. an outcome in which an individual can choose to specialize in a certain line of work and be certain that he or she can make a living at that until retirement
B. an outcome in which resources are devoted to their most efficient use
C. an outcome in which wages are roughly equal around the world
D. an outcome in which the standard of living is roughly equal around the world
Answer: B
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The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. Initially the market price of peanuts is $2.00 per pound
If the market price of peanuts fall to $1 per pound and a worker costs $800 per month, how many workers will Peter employ to maximize his profit? A) zero B) two C) three D) four
The application of economic analysis to human resources issues is called
A) labor economics. B) human economics. C) personnel economics. D) resource economics.
Which of the following was an unintended consequence of the subsidies and mandated expansion in output of gasoline produced from corn-based ethanol?
a. higher food and grain prices. b. a reduction in the demand for battery powered automobiles because of the low prices of gasoline produced from ethanol. c. sharply lower prices for feed grains because of a reduction in the demand for corn. d. a substantial reduction in crude oil prices because of the low-cost production of gasoline from ethanol.
Suppose that international trade is the only kind of international transaction between the United States and Canada. The United States currently is experiencing a balance of trade deficit with Canada. What would happen to the United States and Canadian money supplies if the United States and Canada both used the gold standard?
A) The U.S. money supply would rise and the Canadian money supply would fall. B) Both the U.S. and Canadian money supplies would rise. C) The U.S. money supply would fall and the Canadian money supply would rise. D) Both the U.S. and the Canadian money supplies would fall.