Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value.
B. expects to gain.
C. tries to break even.
D. produces the highest rate of output.
B. expects to gain.
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If factors of production cannot flow between countries
A) there is no reason to expect that wages should be equal worldwide. B) multinational corporations would not exist. C) trade in goods could still occur. D) All of the above.
An increase in the consumption of a good resulting from a reduction in price that makes the good cheaper in relation to other goods is called the:
a. substitution effect. b. income effect. c. real balance effect. d. inelasticity effect.
Which model is used to evaluate the effects of macroeconomic policy such as tax cuts?
A. Aggregate demand and aggregate supply B. Demand and supply C. Game theory D. Circular flow.
A good that is excludable is one that someone can be prevented from using if she did not pay for it
a. True b. False Indicate whether the statement is true or false