Taken collectively, people in nations that engage in international trade are not likely to:
A) consume more than they were able to consume in the absence of trade.
B) increase their standards of living.
C) gain from lower opportunity costs of production.
D) be made worse off.
Ans: D) be made worse off.
You might also like to view...
Why has the federal government generally run budget deficits over the past several decades?
A) Political pressures make expenditures hard to control. B) The federal government's control of the money supply enables it to borrow indefinitely without becoming unable to find creditors. C) The public has accepted the notion that budget deficits can be good for the economy. D) A combination of the three factors mentioned above.
Total expenditures as discussed by Gordon are
A) C + I + G + M. B) C + S + T + X. C) C + I + S + X. D) C + I + G + X - M.
If fair insurance is offered to a risk-averse person, she will
A) buy enough insurance to eliminate all risk. B) not buy any insurance because it is overpriced. C) not buy any insurance since the marginal utility of the amount of the payment is positive. D) buy enough insurance to cover about half of the possible loss.
A difference in wages that arises to offset the nonmonetary characteristics of different jobs is known as
a. a compensating differential. b. an inefficiency wage. c. the equilibrium difference. d. a union wage.