The small-economy assumption is necessary to analyze the gains and losses from international trade
a. True
b. False
Indicate whether the statement is true or false
False
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Factories and machines are examples of:
A. capital goods. B. consumption goods. C. non-market goods. D. value-added goods.
Individual members of a cartel have an incentive to ____ the cartel agreement because pursuit of ____ will maximize individual profit
a. adhere to; self-interest b. cheat on; collective interest c. cheat on; self-interest d. adhere to; collective interest
Which of the following is the best example of a fixed cost for a business?
a. the insurance payment for the protection of a building owned by the firm b. shipping charges for the delivery of products c. managerial salaries paid d. the total of medical insurance premiums on the firm's employees
The phrase "smart for one, but dumb for all" refers to the idea that the individual pursuit of self-interest:
A. always leads to an efficient outcome. B. doesn't always lead to an efficient outcome. C. only leads to an efficient outcome when everyone is well-informed. D. never leads to an efficient outcome.