The diamond-water paradox occurs because:
A. the price of a product is related to its total utility, not its marginal utility.
B. the price of a product is related to its marginal utility, not its total utility.
C. water is, in fact, very scarce in certain regions of the world.
D. diamonds are more useful than water.
Answer: B
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If the government removes a tax on suppliers, then this will cause the ________ schedule to shift ________.
A. demand, right B. demand, left C. supply, right D. supply, left
When quantity supplied is equal to quantity demanded
a. the demand curve is identical to the supply curve b. both the demand curve and supply curve are vertical c. the market is in equilibrium and price is the market-clearing price d. price is zero e. excess demand and excess supply are equal to price
Which of the following is true?
a. In recent decades, the volume of U.S. international trade has been increasing as a share of the economy. b. As transportation costs decline, the volume of international trade will also tend to decline. c. Most international trade is between the governments of different nations. d. If one party to an international exchange gains, the other party must lose a similar amount.
One of the most significant barriers to economic growth in the world's poorest nations is
A. political freedom. B. dead capital. C. environmental issues. D. foreign government interference.