How would you describe an economy that uses its resources to make the greatest possible number of goods and services?
a) efficient
b) using opportunity costs well
c) globally aware
d) underutilized
Ans: a) efficient
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The difficulty of ascertaining the right second-best trade policy to follow
A) reinforces support for the third-best policy approach. B) reinforces support for increasing research capabilities of government agencies. C) reinforces support for abandoning trade policy as an option. D) reinforces support for free-trade options. E) reinforced support for the domestic market failure argument.
Which of these is an advantage of long-term contracts in resource markets? a. Long-term contracts decrease the duration of recessionary gaps. b. Long-term contracts reduce unemployment below its natural rate. c. Long-term contracts help avoid recession in an economy
d. Long-term contracts increase the flexibility of nominal wages. e. Long-term contracts reduce the average cost of negotiation.
Which of the following can serve as an entry barrier?
A. Legal restrictions B. Patents C. Control of scarce resources or inputs D. All of these responses are correct.
The innovations that allowed robust economic growth between 1950 and 2000
A. were unrepeatable. B. were never really that important. C. were repeated in the period after 1980 but didn't have the same impact. D. were focused on entertainment.