Voluntary exchange increases economic efficiency
A) because neither the buyer nor the seller would agree to a trade unless they both benefit.
B) because voluntary exchange only takes place with government permission.
C) because it allows wealthy individuals to act altruistically and give to the poor.
D) because it is free and consequently does not cost anything.
A
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Sticky nominal wages can result in
a. lower profits for firms when the price level is lower than expected. b. a decrease in real wages when the price level is lower than expected. c. a short-run aggregate-supply curve that is vertical. d. a long-run aggregate-supply curve that is upward-sloping.
Which of the following was a main economic policy goal of the Soviet Union?
A. Deindustrialization B. National self-sufficiency C. Export promotion D. Privatization
Which of the following industries would see firms reach their minimum efficient scale at relatively low levels of output?
A. Hair salons. B. Automobile manufacturers. C. Software companies. D. Oil refineries.
Exemptions are reductions of adjusted gross income that depend on
A. family size. B. how money is spent (e.g. on state and local taxes or home mortgage interest). C. how much money is saved. D. family structure (i.e. filing status).