Trade
a. can make every participating nation better off
b. makes some participating nations better off and others worse off.
c. makes a participating nation better off only if the nation cannot produce that good itself.
d. helps developed countries and hurts developing countries.
a
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"When a person is more productive in producing a good or service than another person, the first person has the comparative advantage in producing the good." Is this assertion correct or incorrect? Explain your answer
What will be an ideal response?
With only two goods, if the income effect is in the same direction as the substitution effect then the good is
a. normal b. inferior but not Giffen c. Giffen d. There is not enough information to answer.
Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) the economy enters a recession (which decreases consumers' income). An economist would predict with certainty that
a. equilibrium quantity will rise b. equilibrium quantity will fall c. equilibrium price will rise d. equilibrium price will fall e. the equilibrium price will remain the same
Which of the following is most important if the living standards of people residing in a country are going to improve?
What will be an ideal response?