If opening an economy up to trade always benefits both trading partners, why is free trade controversial?
What will be an ideal response?
Free trade is controversial because it affects various groups in the economy in different ways. While both trading partners on the whole will gain from free trade, some individuals may lose. For example, opening up the economy to trade may allow consumers to buy goods at lower prices but could affect the wages and jobs of domestic workers.
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A neighbor plants flowers in their front yard, which you can view and enjoy from your window. From your perspective, this is an example of
A. an externality. B. marginal analysis. C. property rights. D. an opportunity cost.
The total product is 10 units. The average total cost is $30 and the average fixed cost is $10. What is the amount of the total variable cost?
A) $20 B) $200 C) $300 D) $10 E) It is impossible to determine with the information given.
Which of the following countries has the most economic freedom?
a. Venezuela b. Zimbabwe c. Hong Kong d. Cuba
Which of the following goods is likely to have the most price inelastic demand?
a. margarine b. Tide detergent c. cigarettes d. Coca-Cola e. ground beef