An economy that trades with the rest of the world is a(n) ________.
A. trade economy
B. closed economy
C. open economy
D. command economy
Answer: C
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In a situation where there is no incentive to cut pollution because it will make domestic firms less competitive, it will improve world welfare if:
a. nations impose tariffs on polluters. b. there is an international agreement so that every nation regulates global pollutants and no firms have competitive advantages because of lax pollution laws. c. there is a ban on production until we can scientifically solve our pollution problems. d. we allow the market to work in this case.
Any place where factors of production are bought and sold is a:
A. Private-goods market. B. Stock market. C. Product market. D. Factor market.
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. At a quantity demanded of 750, there is an excess
A. demand of 300 sunglasses if the price is $60. B. supply of 300 sunglasses if the price is $30. C. demand of 450 sunglasses if the price is $60. D. demand of 450 sunglasses if the price is $30.
The United States has developed a comparative advantage in film production due to the film industry being long-established in southern California, and lower costs result from the size of the industry in the area. This source of comparative advantage is
referred to as A) the abundance of natural resources. B) superior process technology. C) external economies. D) best practices of unskilled labor.