Voluntary trade promotes economic progress because
a. it discourages businesses from seeking lower per-unit costs through adoption of mass production methods.
b. it discourages trade based on the comparative advantage of suppliers.
c. it moves goods, services and resources from people who value them less to individuals who value them more.
d. This is a trick question; voluntary exchange does not promote economic progress.
c. it moves goods, services and resources from people who value them less to individuals who value them more.
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
To the casual observer it is often difficult to understand how a company would spend several million dollars building a plant or other structure and then simply stop and abandon the project midway. How can this be justified on economic grounds?
What will be an ideal response?
In well-working markets, cost economies from standardization are reflected in the level of product variety.
Answer the following statement true (T) or false (F)
Refer to the Article Summary. Labor productivity in the UK was well below the productivity in five of the other G7 nations, only faring better than Japan.. Labor productivity is important for an economy because an increase in labor productivity
A) allows the average consumer to increase consumption. B) will create short-run, but not long-run, economic growth. C) will increase output and decrease wages in the long run. D) will increase the labor force participation rate.