Which statement most adequately describes the productivity of trade relative to the productivity of agriculture and manufacturing?
A) Trade is essential in an economy once agriculture and manufacturing have developed, even though it is not productive.
B) Trade is less productive than agriculture or manufacturing.
C) The word productive must be applied to agriculture or manufacturing in the same way it is applied to trade.
D) Trade is productive only insofar as it distributes newly produced agricultural or manufactured goods.
E) Trade is rarely productive because it almost never increases the quantity of goods in the economy.
C
You might also like to view...
Suppose you were interested in increasing technological progress in your country. Suggest some ways to do it
What will be an ideal response?
Economists love auctions because
a. They maximize consumer surplus b. They create efficiency by allotting the item to the highest-value bidder c. They create efficiency by allotting the item to the lowest value bidder d. All of the above
The ratio between the percentage change in the quantity demanded (Qd) or supplied (Qs) and the corresponding percentage change in price is called:
a. price elasticity. b. cost elasticity. c. demand elasticity. d. supply elasticity.
A reduction in demand for retail salesperson post Christmas and New Year can be categorized as:
a. frictional unemployment. b. structural unemployment. c. seasonal unemployment. d. cyclical unemployment.