How are the domestic sellers and buyers of a good affected if a country starts exporting the good?
What will be an ideal response?
If the country starts exporting the good, sellers can sell the good at a higher price than the domestic price. Therefore, sellers gain. On the other hand, buyers have to pay a higher price for the good; therefore, they lose.
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What four conditions define a perfectly competitive market?
What will be an ideal response?
Moral hazard occurs when the parties on once side of the market, who have information not known to others, self select in a way that adversely affects the parties on the other side of the market.
Answer the following statement true (T) or false (F)
A point outside a society's production possibilities curve is one that is
A) unattainable given the resources of the society. B) technologically inefficient. C) undesirable given the implied underemployment of resources. D) desirable since it satisfies the desires of the population.
In the 1970s and 1980s policies that required retirement of people over age 65 were repealed. Which variable would this directly affect?
a. The employment-population ratio b. Productivity c. Average hours d. Population e. Technology