Which of the following pairs is most likely to represent substitute goods?
a. Hamburgers and hamburger rolls.
b. Movies and popcorn.
c. Beer and pretzels.
d. Shoes and shoelaces.
e. Pork and beef.
e
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The automatic budget deficits and budget surpluses that occur in the federal budget over the business cycle
A) destabilize the economy. B) stabilize the economy. C) decrease potential GDP. D) increase potential GDP.
Which of the following is true?
A) All of the above are true. B) The parents of successful entrepreneurs almost always have at least a college education. C) Successful entrepreneurs are good at discovering profitable opportunities that have been overlooked by others. D) Entrepreneurs are under-represented among millionaires.
The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is
What will be an ideal response?
Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. Which of the following is most likely to happen in the long run following the opening of free trade between the countries?
A. The workers in Alpha will be better off but the landowners will be worse off. B. The workers and landowners in the food industry in Alpha will be better off while the workers and landowners in the drink industry will be worse off. C. The workers in Beta will be better off while the landowners will be worse off. D. The workers and landowners in the food industry in Beta will be better off while the workers and landowners in the drink industry will be worse off.