If there are big gains to be had from specialization and trade, countries generally don't produce one good because:
A. no national economy is a perfectly free market.
B. consumers prefer a mix of goods and services.
C. specialization is not limited by trade agreements.
D. there is perfectly free trade between national economies.
Answer: A
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A) 5%. B) 10%. C) 20%. D) 50%.
Equilibrium in the economy means
A) unemployment is zero. B) quantities demanded and supplied are equal in all markets. C) prices are not changing over time. D) tax revenues equal government spending, so the government has no budget deficit.
Rent seeking is
A) when consumers search for the lowest possible rent on housing. B) illegal in the U.S. C) what regulators do to improve their chances of getting jobs in the regulated industry after they leave government service. D) where firms expend effort and money to profit from government actions.
The poverty line is the income level
A. earned by a worker employed full time at the minimum wage. B. below which a family is officially considered “poor.” C. above which a family is not entitled to government assistance. D. that is the average for American families.