Relative to a closed economy, if Utopia opened itself to trade, domestic tile producers would
A. produce the same amount of tile.
B. produce 150 fewer cases of tile.
C. produce 100 fewer cases of tile.
D. produce 150 more cases of tile.
Answer: C
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The relationship between quantity demanded and price is a(n) ________ relationship.
A. general B. inverse C. dictated D. direct
Which of the following hinders economic freedom?
a. Lower taxes b. Regulations on emissions from automobiles c. International trade d. Secure private property rights e. A democratic government
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective, a. a smaller quantity of the good is exchanged. b. a smaller quantity of the good is demanded. c. a larger quantity of the good is supplied
d. the price rises above the previous equilibrium.
Simplifying assumptions always affect the conclusions derived from an economic model
a. True b. False