Define a free market economy and name nation(s) that use them.
What will be an ideal response?
Economy is based on the power of division of labor in which the prices of goods and services are determined in a free price system set by supply and demand. Ex: Brazil, Japan, USA, Sweden, Colombia, Sudan, etc.
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The government makes all economic decisions in a mixed economy
Indicate whether the statement is true or false
Refer to Table 9-9
a. Which country has an absolute advantage in the production of both light bulbs and flash drives? b. Which country has a comparative advantage in the production of light bulbs? c. Which country has a comparative advantage in the production of flash drives? Table 9-10 Pens Pencils Tran 40 160 Farah 50 150 Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
In Africa, which of the following policies has been most successful at increasing elephant populations?
a. Banning the ivory trade by making the buying and selling of ivory illegal. b. Making elephants the common property of the people of the country through government ownership and control and making the killing of elephants illegal c. Allowing private ownership of elephants and making the ivory trade legal d. When used together, the policies in a and b have been more successful than the policy in c.
An automobile manufacturer voluntarily recalls certain models to fix a defective part at no cost to the owners. This action has the effect of
A. a market failure. B. the lemon problem. C. a manufacturer's warranty. D. none of these.