We currently run a negative trade balance in ______ and a ______ trade balance in services.

Refer to the figure above. What is the domestic price of chairs in Lithasia in the absence of trade?

A) $2 B) $3 C) $4 D) $6

When a motorist speeds down the road at well above the posted limit, economists believe that the principle of ____ may be directing his actions

a. rent seeking b. defective telescopic faculty c. moral hazard d. resource misallocation