(I) When individuals engage in a voluntary exchange, both parties are made better off. (II) By channeling goods and resources to those who value them most, trade creates value and increases the wealth created by a society's resources.
What will be an ideal response?
Both I and II are true.
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As shown in the figure above, the rent ceiling
A) decreases consumer surplus. B) increases producer surplus. C) decreases deadweight loss. D) increases the quantity of housing rented. E) is efficient.
Economic surplus is another term for which of the following?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
A country has a comparative advantage over another in the production of gadgets if it can produce
a. more gadgets than can the other country. b. more gadgets than can any other country. c. gadgets more efficiently than it can produce any other good. d. gadgets at lower opportunity cost than can the other country.
Banks and mutual funds are examples of financial markets
a. True b. False Indicate whether the statement is true or false