Suppose an owner makes a substantial operating loss while owning a team. If history is any guide, the money lost will be
A. compounded by the fact that the team will lose even more money when he sells the team.
B. just about offset by the slight gain the owner will get when he sells the team.
C. much more than offset by the enormous gain the owner will get when he sells the team.
D. slightly more than offset by the gain the owner will get when he sells the team.
Answer: C
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Absolute poverty measures vary from country to country. For example, in 2015, the poverty line in the United States for a family of four with two children
was an annual income of $24,250 but economists often use a much lower threshold income of $1 per day when calculating the rate of poverty in poor countries. How is this absolute poverty measured? A) by comparing the amount of goods and services that a household's income can purchase in one country to the amount of goods and services that a household's income can purchase in another country of comparable living standard B) by comparing the amount of goods and services that a household's income can purchase to an objective measure of the amount of income needed to sustain a certain predetermined standard of living C) by comparing the percentage of households living below the poverty line to the total population D) by comparing a household's income to the income required to maintain the average standard of living in a society at a particular time
If what producers intend to produce for consumption is precisely what consumers intend to consume, then the economy will be in equilibrium
Indicate whether the statement is true or false
In a market economy,
a. there is a fixed economic pie to be divided among individuals. b. differences in incomes provide individuals with an incentive to supply resources that are highly valued by others. c. a central distributing agency carves up the economic pie and allocates slices to individuals. d. both a and b above are true.
Which of the following is the most accurate statement?
a. The one argument for restricting trade that almost all economists accept as valid is the infant-industry argument. b. Almost all economists insist that it is never appropriate to protect "key" industries, even when there are legitimate concerns about national security. c. The idea that one nation might want to threaten another nation with a trade restriction is associated with the protection-as-a-bargaining-chip argument for restricting trade. d. The protection-as-a-bargaining-chip argument for restricting trade is also known as the infant-industry argument.