Economists and laypeople see the pros and cons of international trade in different ways. Which of the following is one of those ways?
A. Laypeople believe in the law of one price and economists do not.
B. Laypeople tend to think of foreign trade only in terms of manufactured goods.
C. Laypeople enjoy the benefits of trade in terms of lower consumer prices.
D. Laypeople recognize that the United States has a comparative advantage in services.
Answer: B
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If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:
A. A
B. It is likely to be unaffected and stay at point B
C. C
D. D
Public funding of stadium construction for a professional football, baseball or basketball team could be argued using "merit good" logic
Indicate whether the statement is true or false
On-the-job training is one area of education in the United States most influenced by the
A. business sector. B. government sector. C. household sector. D. foreign sector.
Refer to Figure 8.8. At the market price of $8 per bushel, if this farmer produces 700 bushels of soybeans, the total revenue would be A) $1,200. B) $2,800. C) $5,600. D) $8,400.