Does voluntary exchange create wealth?
a. No, exchange merely shuffles the existing supply of goods and services among people.
b. No, if one person gains, the other party must lose an equal amount.
c. Uncertain, it will increase wealth if it creates more goods and services; otherwise it exerts no impact on the wealth of people.
d. Yes, exchange makes it possible for the trading partners to gain more value from the existing supply of goods and it also makes larger output levels possible.
d. Yes, exchange makes it possible for the trading partners to gain more value from the existing supply of goods and it also makes larger output levels possible.
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Which of the following is a determinant of the price elasticity of demand for an item?
A) the availability of a close substitute for the item B) the percentage of a consumers budget allocated to expenditures on the item C) the amount of time available to adjust to a change in the price of the item D) All of the above are correct.
One problem with the European Union's choice regarding equality versus efficiency is that it may inadvertently shrink the size of its "economic pie"
a. True b. False Indicate whether the statement is true or false
What are the three major types of quotas?
What will be an ideal response?
Economies of scope
A) is a situation in which it is more expensive to produce goods separately than jointly. B) is the opposite of economies of scale. C) occur whenever only one good is produced at a time. D) are an example of the gains from specialization.