Which of the following is NOT a reason that free trade stimulates economic growth?
A) Free trade encourages a more rapid spread of technology.
B) Industries have larger markets.
C) The importation of technically advanced products enables the country to imitate the technology.
D) Free trade keeps domestic prices up, enabling firms to make more profits that can be spent on research and development.
D
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If the market demand for paper remains the same as in Problem 6, calculate the market price, market output, and the economic profit or loss of each firm
What will be an ideal response?
To an economist, scarcity means that:
a. it is very time-consuming to find a good. b. at a zero price, the available quantity of a good is insufficient to meet people's wants. c. a good is unavailable even at very high prices. d. at the current market price, the amount available is less than the amount that people want and are willing to pay for. e. resources are unlimited but people's desires are limited.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Answer the following questions true (T) or false (F)
1. Suppose the extra annual cost to a nation to enact a mandatory seat belt law for motorcycles is $850. Then, the nation should enact this seat belt law if doing so results in an additional benefit of $850 or more each year. 2. The government makes all economic decisions in a mixed economy. 3. When voluntary exchange takes place, both parties gain from the exchange.