Which of the following statements is NOT correct?
A. Tariffs hurt producers and help consumers in the country imposing the tariff.
B. Tariffs always decrease economic domestic well-being if imposed by a small country.
C. Tariffs can increase, decrease, or leave unchanged the country's economic well-being if imposed by a large country.
D. Tariffs are likely to decrease world economic well-being.
Answer: A
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A person's ________ indicate her willingness to expose others to risk and that she is doing it for ________
A) actions; her own benefit B) actions; society's benefit C) finances; her own benefit D) finances; society's benefit
In his book, The Wealth of Nations, Adam Smith made the following observation? a. There is no such thing as a free lunch
b. People buy more when prices are low than when prices are high. c. No matter how much people make, they tend to spend more than they make. d. People tend to pursue their own personal interest and that an invisible hand (the market) guides their self-interest, increasing social welfare and economic well being.
The scientific method is applicable to studying
a. natural sciences, but not social sciences. b. social sciences, but not natural sciences. c. both natural sciences and social sciences. d. None of the above is correct.
Which of the following statements about the way markets allocate resources is most accurate from society's perspective?
A. Markets always fail to allocate resources properly, so we must rely on the government to determine the proper use of our resources. B. The market may not always allocate resources in a way that is in society's best interest. C. Resource allocation by markets may not be perfect, but it is always better than government allocation of resources. D. The market always allocates resources in the best way.