When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that
A. worldwide economic efficiency will decrease.
B. the average standard of living in the world will go down.
C. the average standard of living in the world will go up.
D. the world will move from a point on the production possibilities curve to a point inside the curve.
Answer: C
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Refer to the data provided in Table 11.2 below to answer the following question(s). Table 11.2 
Refer to Table 11.2. When the interest rate ________, the farmer will engage in no investment.
A. is less than 15% B. is greater than 5% C. is less than 5% D. is greater than 15%
Gasoline prices increased substantially from 1998 to 2008, in large part, because of
A) Growth in demand from economic growth in places such as China and India B) Increased power and decreased production (supply) by OPEC C) Increased control over world gasoline supply by major U.S. oil companies D) Reductions in supply from the North Sea
Why does the existence of an external benefit lead to the production of less than the efficient quantity?
What will be an ideal response?
Select the phrase that correctly completes the following statement. "An increase in input prices caused a decrease in the supply of baseballs. As a result ________."
A) the price of baseballs increased and the quantity demanded of baseballs decreased B) the equilibrium quantity of baseballs increased C) the price of baseballs increased. The higher price caused the supply of baseballs to increase D) the price of baseballs increased and the demand for baseballs decreased