A mixed economy is one in which ________.
A) both resources and means of production are extremely limited and generally confined to agricultural produce
B) the government or other centralized group determines and controls all resources and means of production
C) both individuals and government control resources and determine production methods
D) either individuals or private firms control resources and determine production methods
E) there is no government intervention whatsoever in industry
C) both individuals and government control resources and determine production methods
Explanation: C) A mixed economy is one in which individuals, businesses, and government share responsibility for determining allocation of resources and methods of production. Responses A) refers to a traditional economy; B) to a planned economy; and D) to a market economy.
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The ________ real GDP, the ________
A) larger; larger the demand for money B) larger; smaller the demand for money C) larger; larger the supply of money D) smaller; larger the demand for money E) larger; smaller the supply of money
In the circular flow model, households supply resources such as labor services in the factor market
Indicate whether the statement is true or false
An examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each
However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country). Are there in fact gains from trade for the world as a whole? Explain.
Dumping refers to selling a product abroad for less than the cost of production
a. True b. False