What condition(s) must exist to make trade among nations mutually beneficial?
a. Nations must have the same opportunity costs of production.
b. Nations must not impose tariffs or quotas.
c. Nations must be equally efficient at producing a traded good.
d. Nations must have an absolute advantage in the production of a good.
e. Nations must have a comparative advantage in the production of a good.
E
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__________ Theory claims that individuals seek to develop relationships that will maximize the benefits or profits and minimize the costs or deficits
a. Elbing b. Social Exchange c. Life Sciences d. Ostrich Effect
Markets can fail to achieve efficiency when
a. there are prices consumers do not think are fair. b. there are wages workers do not think are fair. c. trade puts people out of work. d. there are buyers or sellers without adequate information about the quality of goods.
Rent is what entrepreneurs earn, but it is called profit to distinguish it from other forms of rent
Indicate whether the statement is true or false
There are possible policies that could significantly reduce income inequality but opponents argue that such policies would be likely to lead to
A. higher inflation. B. a reduction in unemployment. C. no impact on inequality. D. higher levels of economic growth. E. higher unemployment.