Specialization and trade are beneficial to society because:
A. a division of labor lowers prices for products.
B. scarce resources are utilized more efficiently.
C. the output of economic goods may be increased with no increase in resources.
D. All of these are correct.
Answer: D
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Which of the following is correct about the economic decisions consumers, firms, and the government have to make?
A) Each faces the problem of scarcity which necessitates trade-offs in making economic decisions. B) Governments may face the problem of shortages but not scarcity in making economic decisions. C) Firms and the government face scarcity, individuals only face shortages. D) Only individuals face scarcity; firms and the government do not.
The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law. The legal requirement to pass this test before practicing law allows the Bar Association to act as a
A. monopsony. B. union that can restrict the supply of lawyers. C. union that can increase the number of lawyers. D. bilateral monopoly.