"Mediocre economists often consider only the immediate direct effects of a change, whereas a good economist will also consider indirect effects that may only become observable over time." This statement most clearly emphasizes
a. the law of comparative advantage.
b. the importance of secondary effects.
c. the gains derived from voluntary exchange.
d. economizing behavior.
b. the importance of secondary effects.
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The automobile industry in Richland has a Herfindahl-Hirschman Index of 5,600. This implies that the automobile industry in Richland is ________
A) dominated by a few buyers B) moderately concentrated C) highly concentrated D) perfectly competitive
In a flexible exchange rate system, which of the following would NOT cause the U.S. dollar to depreciate relative to the British pound?
A) a decrease in demand for British goods in the United States B) an increase in demand for British goods in the United States C) a decrease in British demand for U.S. exports D) a shift to the left in the supply of British goods to the United States