Allowing free trade can lead to greater output because of the principle of:
a. absolute advantage
b. rule of 70.
c. comparative advantage.
d. scarcity.
c
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To encourage invention and innovation, the government provides
A) patents. B) public franchises. C) government licenses. D) natural monopolies. E) easily obtained ownership barriers to entry.
Bonds are a form of debt
Indicate whether the statement is true or false
If polluters are forced to pay for the cost of their pollution, they will reduce pollution toward a socially optimal amount.
Answer the following statement true (T) or false (F)
An increase in the price of a product will reduce the amount of it purchased because:
A. supply curves are upsloping. B. consumers substitute relatively high-priced for relatively low-priced products. C. the higher price means that real incomes have risen. D. consumers will substitute other products for the one whose price has risen.