In order to societies to reap the gains from trade, it is necessary to
A) define and enforce property rights.
B) foster economic growth.
C) distribute resources equally.
D) achieve productive efficiency.
A
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A. What are the two effects of an increase in the wage rate on an individual's labor supply decision? Briefly explain each effect
b. Explain how a labor supply curve could be backward bending. What will be an ideal response?
Which is not an essential characteristic of a perfectly competitive market?
A. Goods are standardized. B. Buyers have perfect information. C. Goods from one seller cannot be distinguished from another's. D. Firms have limited market power.
Which of the following is true of product differentiation?
a. Product differentiation is the first order derivative of the production function. b. Product differentiation exists only when the products are actually different from each other. c. Product differentiation exists when consumers perceive the products to be different. d. Product differentiation exists when producers perceive the products to be different. e. Product differentiation exists when similar goods are sold in geographically segregated markets.
The ECB, like the U.S. Federal Reserve, is ______, and unlike the U.S. Federal Reserve, is not ______.
A) independent; a lender of last resort B) subject to scrutiny by the legislature; able to lend to large corporations C) dependent on congressional approval for its policies; committed to price stability D) able to lend to member governments; able to lend directly to banks