Free trade
A. hurts economic growth because foreign countries can produce goods with lower labor costs.
B. hurts economic growth because foreigners are not bound by the same patent laws as we are.
C. helps economic growth by increasing tariffs.
D. helps economic growth by encouraging the sharing of technology and industrial ideas.
Answer: D
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You have just opened a new Italian restaurant in your hometown where there are three other Italian restaurants. Your restaurant is doing a brisk business and you attribute your success to your distinctive northern Italian cuisine using locally grown
organic produce. What is likely to happen to your business in the long run? A) Your competitors are likely to change their menus to make their products more similar to yours. B) Your success will invite others to open competing restaurants and ultimately your profits will be driven to zero. C) If your success continues, you will be likely to establish a franchise and expand your market size. D) If you continue to maintain consistent quality, you will be able to earn profits indefinitely.
Commodity money is a good
A) used as money that has no secondary use. B) that is designated as money by law. C) used as money that also has value independent of its use as money. D) used as money that has no intrinsic value.
Profits of private corporations are divided into:
What will be an ideal response?
If households were to switch production away from an equal division of chores
(e.g., doing dishes, mowing the lawn, etc.) to a system based on specialization and trade, the efficiency of household production would probably ________ and leisure time would probably ________. A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease