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.
B. prefer to let the market forces of supply and demand solve trade imbalances.
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Which of the following statements is true?
A) Knowledge of economics complicates decision making. B) Economics is more of a theoretical subject with limited applications in the real world. C) Testing with data is essential to develop a good theory. D) Cost-benefit analysis can be applied only to limited economic decisions.
Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________
A) 500 books and 1000 tables; an inefficient but attainable point. B) 500 books and 500 tables; an attainable and efficient point. C) 1000 books and 1500 tables; a free lunch. D) 1000 books and 1000 tables; a free lunch. E) 1000 books and 500 tables; an efficient point.
A supplier of an input is unlikely to have bargaining power if
A) it has a patent on the input. B) many firms can supply the input. C) the input supplied is specialized. D) it is the sole supplier of the input.
An efficient point of production is
A) a point on the production possibilities curve. B) a point inside the production possibilities curve. C) the point where scarcity no longer exists. D) the point where we are currently producing.