When the government provides a legal framework,
A. Private market transactions suffer and government market transactions benefit.
B. Private market transactions benefit and government market transactions benefit.
C. Private market transactions suffer and government market transactions suffer.
D. None of the choices are correct.
Answer: B
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An increase in the price of labor will, in the short-run, cause a competitive firm's
a. marginal cost to increase, the quantity it sells to decrease and therefore reduce the quantity demand of labor. b. price of its output to increase, leaving demand for labor unchanged. c. marginal revenue product of labor to decrease and therefore reduce demand for labor. d. marginal revenue product of labor to increase and therefore increase demand for labor.
Refer to the figure above. What is the producer surplus when Lithasia engages in trade and the government imposes a tariff of $1 on chairs?
A) $5 B) $20 C) $30 D) $40
A decrease in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Trade contributes to prosperity because: a. every country lacks some vital resources that it can get economically only by trade
b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. each country's labor force makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. d. of all of the above.