The presence of substitute goods will tend to make demand more

Openness and change in the economic models of India and China have meant for the world economy all of the following EXCEPT

A) hundreds of millions of people have escaped poverty. B) many manufactured goods and services have become cheaper. C) forced some firms to downsize, offshore or otherwise change business practices. D) increased the market power of firms in industrialized countries as they gained most from this evolving trade.

When a government imposes price controls, the result is that

A) the rationing function of prices is not allowed to function freely. B) the price system operates more efficiently. C) all trades are as mutually beneficial to each party as possible. D) scarcity usually disappears.