Which of the following best explains why international trade exists?
a. International boards of trade define standard practices to guarantee free exchange.
b. Newer methods of transportation have enabled timely shipping of agricultural goods.
c. The development of the Internet since 1990 has increased exchange among countries.
d. Countries are willing to exchange goods and services they have for those they lack.
d. Countries are willing to exchange goods and services they have for those they lack.
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A fruit retailer buys 50 pounds of apples from the wholesale market every day. The retailer has observed that 20% of the apples bought each time are not of good quality
Because it is not possible for the retailer to check each apple before buying, how much should he pay for each pound if he values good apples for $1.40 per pound while he has a value of zero for bad quality apples? A) $1.12 per pound B) $1.20 per pound C) $1.40 per pound D) $2 per pound
When demand is perfectly elastic:
a. the demand curve is vertical. b. the demand curve is horizontal. c. consumers do not respond to price changes. d. suppliers do not respond to price changes.
On what kind of income is our tax system based?
A. real B. nominal C. adjusted D. inflationary
If the price of a good increases by 5% and the quantity demanded decreases by 5%, then at that price, the good is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic.