Suppose that the US market for soybeans is not open to international trade. Currently, soybeans sell for $6.00 per bushel in the US and the world price for soybeans is $8.00 per bushel. This information implies that
a. the US has an absolute advantage in the production of soybeans and if the market opens to international trade, the US would export soybeans.
b. the US does not have an absolute advantage in the production of soybeans and if the market opens to international trade, the US would import soybeans.
c. the US has a comparative advantage in the production of soybeans and if the market opens to international trade, the US would export soybeans.
d. the US does not have a comparative advantage in the production of soybeans and if the market opens to international trade, the US would import soybeans.
c
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The primary reason the federal budgeting process changed in 1921 was that _____
a. the level of government expenditures were increasing b. the President wanted more power c. federal agencies wanted less responsibility d. World War II forced the military to get involved
State right-to-work laws
A) prohibit discrimination in hiring. B) force companies to submit to Equal Employment Opportunities Commission arbitration in disputes. C) encourage companies to hire minorities. D) make compulsory union membership illegal.
A market surplus occurs if the quantity:
A) demanded is greater than the quantity supplied. B) demanded is less than the quantity supplied. C) demanded is equal to the quantity supplied. D) supplied is less than the quantity demanded.
Which of the following is a question answered with normative economic reasoning?
A. If the college offers free textbooks for students, will more students read their textbooks? B. If the college provided less financial aid for out-of-state students, would more in-state students benefit? C. If the college increased its enrollment requirements, would class size decline? D. Should the college increase tuition to fund its athletic programs?