In order to obtain an efficient allocation of resources worldwide
A. countries that have a lot of resources should ship resources to countries that do not have a lot of resources.
B. no trade among countries should occur.
C. countries that have a lot of resources should not trade since poorer countries cannot compete.
D. each country should produce the good they have a comparative advantage in and then trade.
Answer: D
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Economics is best defined as the study of:
A. supply and demand. B. the financial concerns of businesses and individuals. C. inflation, interest rates and the stock market. D. how people make choices in the face of scarcity and the implications of those choices for society as a whole.
If a state government reduces property taxes for residents at the same time that it increases the state income tax, what will happen to the expenditures schedule of the residents of this state?
a. It shifts upward. b. It shifts downward. c. It becomes less steep. d. It becomes steeper. e. It does not change.
Which of the following constitutional provisions would help promote economic growth and prosperity?
A) the right of individuals and businesses to compete in markets B) protection of private property rights C) the right of citizens to freely engage in exchange with foreigners D) all of the above
Figure 36-3
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Which of the situations illustrated in Figure 36-3 shows the effects of a currency appreciation leading to real GDP growth?
A. 1 B. 2 C. 3 D. 4