When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,
What will be an ideal response?
private producers of such goods will have little incentive to control costs and provide them at low prices.
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A country will export a good if it
A) can sell the good to a foreigner at a lower price than the no-trade price. B) can sell the good to a foreigner at a higher price than the no-trade price. C) has a high opportunity cost of production. D) is impossible to import the good. E) can dump the good on the world market.
Which of the following would likely occur if a larger number of highly skilled workers were allowed to immigrate to the U.S.?
a. The average wage for highly skilled workers would decline. b. The average wage for highly skilled workers would increase. c. The supply curve for highly skilled workers would shift to the left. d. The demand curve for highly skilled workers would flatten out.
What characteristic of a perfectly competitive firm that causes it to be a price taker?
A. many buyers and sellers B. homogeneous product C. free entry and exit D. Both many buyers and sellers and homogeneous product are correct.
Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. A fully sterilized intervention in the foreign exchange market by the British government is expected to cause
A. Britain to gain official international reserves. B. the British money supply to fall. C. the British money supply to remain unchanged. D. the British money supply to rise.