Trade requires:
A. governments to get together and agree on who is going to specialize in what.
B. governments employ an economic planner to find comparative advantage for different products.
C. that day-to-day business decision making is carried out almost entirely by firms and individuals, not by governments.
D. firms and individuals to follow government mandates about what to trade.
C. that day-to-day business decision making is carried out almost entirely by firms and individuals, not by governments.
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Commercial society provides incentives to specialize by
A) following one's comparative disadvantage. B) pursuing one's comparative advantage. C) producing somewhere outside the production possibilities frontier. D) producing a narrowly defined good without an interest in the wealth it generates to the producer.
According to Utilitarian principles first discussed in the nineteenth century, fairness implies
A) equality of income. B) equality of opportunity. C) winner takes all. D) maximizing consumption.
A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
For profit-maximizing monopolies, explain why the boundaries on the Lerner Index are 0 and 1
What will be an ideal response?