Harvey Morris bought dishes and pitchers made of blue glass during the Great Depression at a flea market. He later resold these items on eBay. The profits Harvey earned from these sales are
A) not economic profits because Harvey did not add value to the items but took advantage of the buyers who were not aware of how much Harvey paid for the items.
B) the result of arbitrage.
C) accounting profits but not economic profits.
D) subject to a retail profits tax.
B
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In the view of the Classical economists, a increase in aggregate demand leads to
A) lower output levels. B) a higher price level. C) higher output levels. D) a lower price level.
The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____
a. freedom of the press b. freedom of speech c. freedom of movement d. freedom of exchange
In the early 1960s and early 1970s, the United States has run
a. small trade deficits. b. large trade surpluses. c. small trade surpluses. d. large trade deficits.
A country that increased its literacy rate and thereby its average human capital would probably
A. Increase GDP. B. Have not impact on GDP. C. Decrease GDP. D. None of the choices are correct.