Under international trade we export those goods for which we have a relatively low
A. materials cost.
B. wage cost.
C. accounting cost.
D. opportunity cost.
D. opportunity cost.
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In an ad for insurance, the text reads "Life's an adventure, and there are plenty of perils awaiting your jewelry: a lost or broken stone, theft, accidental loss, damage, mysterious disappearance Have you thought about insurance?"
What is the economic reasoning for an individual to buy insurance? A) Individuals who buy insurance are profit maximizers. B) Individuals who buy insurance are rational. C) Individuals who buy insurance are dishonest and can profit from dishonesty. D) Individuals who buy insurance increase their expected utility by owning insurance.
If the economy is experiencing unemployment, then the most appropriate government policy would be to:
a. shift the aggregate demand curve by using a tax increase coupled with spending cuts. b. shift the aggregate demand curve by using a tax increase coupled with more spending. c. shift the aggregate demand curve by using a tax cut coupled with spending cuts. d. shift the aggregate demand curve by using a tax cut coupled with more spending. e. shift the aggregate supply curve by using a tax cut coupled with spending cuts.
To construct a supply curve, an economist needs data on price and quantity. Each point on the supply curve is
a. supply of the product. b. a quantity supplied at that price. c. the amount that people want to buy. d. the amount people want to sell to buyers of different incomes. e. All of the above are correct.
In the simple circular-flow diagram, who buys the factors of production?
a. households only b. firms only c. both households and firms d. neither households nor firms