Whenever the opportunity costs of goods are significantly different in different countries, there are gains from specialization and trade

The circular flow model shows that goods and services flow from

A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.

Suppose a pharmaceutical company wants to test the effectiveness of a new drug in curing cancer. Which approach should it use to test whether the new drug is more effective than the existing medicines that are widely used?

What will be an ideal response?

Answer the following statements true (T) or false (F)

1. The measure of elasticity will be the same at any place along a given straight-line, slanted demand curve. 2. If 1,000 units of a particular good would be purchased at 40 cents per unit but only 750 units would be purchased at 50 cents per unit, the demand for the good is inelastic. 3. Graphically, perfectly elastic demand is represented by a straight horizontal line. 4. It is possible for a change in the price of one commodity to lead to a change in the demand for another commodity. 5. Any time the market price moves away from its equilibrium position to a lower price, market action will tend to force it further away from its original equilibrium position.

Everything else held constant, a decline in interest rates will cause spending on housing to

A) fall. B) remain unchanged. C) either rise, fall, or remain the same. D) rise.