A free good is:
A) also a scarce good.
B) a relatively abundant good.
C) a good with no opportunity cost.
D) a good with relatively low opportunity cost.
Answer: C) a good with no opportunity cost.
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When will consumers' surplus overstate the actual gains received by consumers?
a. When allocation decisions are not made on the basis of price. b. When the commodity is not equally divided among consumers. c. When all consumers place the same marginal value on the good. d. When the distribution of goods is Pareto optimal.
Suppose there is a decline in the demand for the product labor is producing. Furthermore, the price of capital, which is complementary to labor, increases. Thus, the demand for labor
A. will decrease. B. will increase. C. may either increase or decrease. D. will not change.
A country's GNP is always larger than its GDP
Indicate whether the statement is true or false
Most regional trade and WTO agreements practice
A) the harmonization standards only. B) separate standards only. C) mutual recognition standards only. D) a combination of harmonization, mutual recognition, and separate standards. E) only the standards set out by the WTO.