What is as prices increase, suppliers will supply more
100
What does NAFTA stand for?
What is the North America Free Trade Agreement
100
What are inferior goods?
What is a good for which demand falls when income rises
100
Why are all goods and services scarce?
What is all resources are scarce.
200
When the selling price goes up, what is the relationship to the quantity supplied?
What is an increase in producing more goods.
200
When a nation imports more than it exports, economist call this what?
What is a trade deficit
200
How would you describe an economy that uses its resouces to make the greatest possible number of goods and services
What is an efficient economy
200
Why does even a free market need some government intervention?
What is to provide for things that the marketplace does not address.
300
What is the difference between shortage and scarcity?
What is a shortage is temporary, scarcity always exists.
300
What country is the worlds largest exporter of services?
What is the United States
300
What is the definition of an oligopoly?
What is 2 to 4 firms producing 70% to 80% of the output
400
The government can affect supply when it reduces the input costs to the supplier. What is this called?
What is a subsidy
400
According to the law of comparative advantage, a country should do what?
a. export goods with the lowest opportunity cost
b. export goods with the lowest production cost.
What is specialize and export goods with the lowest opportunity cost
400
What type of decision is a "guns or butter" decision?
a. country decides to build fighter jets or new sports cars
b. a school decides to build a new gym or auditorium
What is a country decides to build fighter jets or new sports cars
500
What factor is the greatest determinant of the elasticity of supply?
What is time
500
If the US dollar depreciates against the Canadian dollar what would be the likely outcome?
a. trade deficit in Canada
b. trade surplus in US
c. trade surplus in Canada
d. trade deficit in both countries
What is a trade surplus in the US
500
How much control over price do companies in a perfectly competitive market have?