Economic integration
A. occurs when countries are granted most-favored-nation status.
B. occurs when one country voluntarily agrees to reduce its exports to another country.
C. occurs when two or more nations join to form a free-trade zone.
D. occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets.
Answer: C
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Increased international trade reduces the demand for a country's products that are produced more efficiently abroad (import-competing products). This increase in trade ________ the demand for workers in import-competing industries, and ________ their wages.
A. decreases; increases B. increases; increases C. decreases; decreases D. increases; decreases
What are the major problems that will tend to arise if there are legal limits on the movement of prices?
A. Favoritism and corruption of officials and market participants B. Unenforceability of laws and higher costs of transactions C. Increasing restrictions to enforce the laws D. Misallocation of resources as prices no longer correspond to costs E. All of these responses are correct.
Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His accounting profits is:
a. $300,000 b. $100,000 c. $97,000 d. $20,000
Which of the following is the correct way to describe equilibrium in a market? a. At equilibrium, demand equals supply
b. At equilibrium, quantity demanded equals quantity supplied. c. At equilibrium, market forces no longer apply. d. At equilibrium, the "fairest" price for output is achieved.