When trade is free, patterns of trade and trade flows result from
A. the collective decisions of a few importers and exporters, as well as millions of private households and firms.
B. the collective decisions of a few importers and exporters, as well as the governments of the countries in which they reside.
C. the independent decisions of thousands of importers and exporters, as well as the governments of the countries in which they reside.
D. the independent decisions of thousands of importers and exporters, as well as millions of private households and firms.
Answer: D
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Which of the following would most likely cause an increase in the demand for oatmeal?
a. An increase in the price of eggs b. An increase in the price of orange juice c. A fall in the price of corn flakes d. A fall in the price of oatmeal e. An increase in the price of cigarettes
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Which of the following statements is true?
A. Tom experiences an economic loss of $6000. B. Tom has an opportunity cost of $41,000. C. Tom earns an accounting profit of $35,000. D. All of these are true.
The idea that the U.S. economy would continue to experience rapid gains in productivity and GDP growth was interrupted in 2001.
Answer the following statement true (T) or false (F)
When investment remains the same at each level of GDP in a private closed economy, the slope of the aggregate expenditures schedule:
A. exceeds the MPC. B. is less than the MPC. C. equals the MPS. D. equals the MPC.