Microeconomics

* Question 1

5 out of 5 points

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| Which condition is necessary in order for mutually beneficial trade to occur between two otherwise isolated nations? | | | |

| Selected Answer: | b. Each nation must be able to produce at least one good relatively cheaper than the other. |

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* Question 2

5 out of 5 points

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| Refer to the above graphs. Terryville has a comparative advantage in producing _____.

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| Selected Answer: | a. Product A |

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* Question 3

5 out of 5 points

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| Price fixing ____. | | | |

| Selected Answer: | b. is a per se violation of the antitrust laws |

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* Question 4

5 out of 5 points

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| The United States' most important trading partner quantitatively is _____. | | | |

| Selected Answer: | b. Canada |

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* Question 5

5 out of 5 points

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| Refer to the diagram showing the domestic demand and supply curves for a specific standardized product in a particular nation. If the world price for this product is $0.50, this nation will experience a domestic ____.

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| Selected Answer: | a. shortage of 160 units, which it will meet with 160 units of imports |

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* Question 6

5 out of 5 points

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| Refer to the graphs. Stanville has a comparative advantage in producing _____.

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| Selected Answer: | b. product B |

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* Question 7

5 out of 5 points

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| Refer to the diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. What do the trading possibilities curves imply?

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| Selected Answer: | c. World resources will be allocated more efficiently if the two nations specialize and trade based on comparative advantage. |

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* Question 8

5 out of 5 points

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| The antitrust laws are based on the ____. | | | |

| Selected Answer: | b....