Free trade is ________, because it ________ the size of the pie available to the economy.
A. efficient; decreases
B. inefficient; decreases
C. inefficient; increasesÂ
D. efficient; increases
Answer: A
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An increase in supply, other things being equal, will cause which of the following to occur?
A) quantity supplied to decrease. B) quantity demanded to increase. C) a rightward shift in the demand curve as the price falls. D) a leftward shift in the demand curves as the price increases.
Which of the following does not happen when new firms enter a monopolistically competitive industry? a. The demand curve for each of the existing firms will fall
b. The demand curve for each of the existing firms will move inward. c. The demand curve for each of the existing firms will becomes relatively more elastic. d. The demand curve for each of the existing firms will shift to the right.
Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are
a. not a concern if a market is perfectly competitive. b. a deadweight loss to society. c. a function of the reduction in the quantity produced by a monopolist in comparison to a competitive market. d. All of the above are correct.
When computing the opportunity cost of attending a basketball game you should include
a. the price you pay for the ticket and the value of your time.
b. the price you pay for the ticket, but not the value of your time.
c. the value of your time, but not the price you pay for the ticket.
d. neither the price of the ticket nor the value of your time.