Contracts are:
a. are command-based systems in which prices usually play a relatively small role.
b. a set of promises intended to create economic value and enforceableby a court or some other agency, such as an arbitrator
c. are a mode of governance that facilitate the purchase and sale of standardized goods or services, often in repeated transactions.
d. economic institutions that can greatly ease the process by which a transaction moves from proposal to commitment.
B
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Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE?
A. There are no opportunity costs involved in choosing one point on the curve over all other points. B. Society cannot have more of both goods at the same time. C. An additional computer can be produced only if fewer televisions are produced. D. The trade-off between computers and televisions is not constant.
Which of the following is both a major import and a major export of the United States?
A. Apparel B. Agricultural products C. Computers D. Petroleum
If net exports are positive,
A) capital inflows must be greater than capital outflows. B) net foreign investment is negative. C) net foreign investment is also positive. D) Both A and B are correct.
Quotas that limit the quantity of imports of a foreign good provide an incentive for foreign suppliers to: I. Provide higher quality goods. II. Seek more open markets elsewhere. III. Lower prices to be more competitive. IV. Stop all trade with the country imposing the quotas. Which of the above statements are true?
a. I and II. b. I and III. c. II and IV. d. I, III, and IV. e. III only.