The international movement of factors of production:
a. is prohibited by the Geneva Convention.
b. is completely free of restrictions everywhere in the world.
c. tends to make the prices paid to factors of production among countries move further apart over time.
d. tends to make the prices paid to the factors of production among countries more similar over time.
Ans: d. tends to make the prices paid to the factors of production among countries more similar over time.
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The Clayton Act of 1914
a. was too vaguely worded to reduce anticompetitive behavior significantly b. prohibited conspiracies in restraint of trade c. prohibited price discrimination that reduces competition and cannot be justified based on cost differences d. created the Federal Trade Commission e. prohibited firms from reducing prices too far
In computing GDP, market prices are used to value final goods and services because
a. market prices reflect the values of goods and services to the buyer. b. market prices do not change much over time, so it is easy to make comparisons between years. c. if market prices are out of line with how people value goods, the government sets price ceilings and price floors. d. None of the above is correct; market prices are not used in computing GDP.