According the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good, because the domestic price is greater than the world price.
B. export this good, because the domestic price is greater than the world price.
C. import this good, because the world price is greater than the domestic price.
D. export this good, because the world price is greater than the domestic price.
A. import this good, because the domestic price is greater than the world price.
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Which of the following situations will tend to feature economic rents that are much higher than the resource's opportunity cost?
a. Unskilled day labor on a construction site b. Generic lumber used in the construction of a commercial building. c. Wheat grown by one of the thousands of wheat farmers in the U.S. and bought by Kellogg to produce breakfast cereal d. An otherwise unemployable software engineer possessing unique knowledge required to resolve a particular company's latest software bug.
Which of the following wars consumed almost half of the United States' total output?
A. the Civil War B. World War I C. World War II D. the Vietnam War
________ markets transfer funds from people who have an excess of available funds to people who have a shortage
A) Commodity B) Fund-available C) Financial D) Derivative exchange
Government action will often result in the counterproductive use of resources because
a. there is often a conflict between winning political elections and adoption of only productive programs. b. many politicians are not interested in how their legislative votes will influence their chances of winning future elections. c. politicians are often unwilling to listen to interest groups that have specialized knowledge. d. voter participation is low; if more people voted, the political process would be more efficient.