Textbook examples of trade between two nations are simplified in order to show how two nations both benefit from trade. These examples are misleading because
A) in the real world, rich countries can take advantage of poor countries.
B) they do not account for the reduction in wages that occurs in both countries as a result of trade.
C) some individuals in both countries may be made worse off because of trade.
D) trade restrictions are likely to be imposed as trade grows over time.
Answer: C
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In the U.S. economy, building human capital is more important than building physical capital
a. True b. False Indicate whether the statement is true or false
When considering GDP as a measure of the nation's economic performance, which of the following statements is NOT true?
A. GDP is useful to map changes in the economy's domestic economic performance over time. B. GDP is underestimated because it does not include illegal activities. C. GDP would be a better measure of economic performance if it included nonmarket activities. D. GDP is a good measure of a nation's overall welfare.
The price of computers has fallen each year for the last 30 years. This is probably an example of the working of:
A. nonmarket forces. B. economic forces. C. political forces. D. social forces.
Which of the following would cause an outward shift of the production possibilities frontier?
a. An increase in opportunity costs b. A reduction in the size of the labor force c. A reduction in inefficiency d. A change in the combination of goods produced e. An improvement in technology