Suppose Panama produces only two goods, bananas and hats. If Panama has a comparative advantage in bananas, a move toward free trade will:
A. harm hat workers, benefit banana workers, but benefit the nation as a whole.
B. harm hat workers, harm banana workers, but benefit the nation as a whole.
C. benefit hat workers, harm banana workers, but harm the nation as a whole.
D. benefit hat workers, harm banana workers, but benefit the nation as a whole.
Answer: A
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Which of the following is NOT a reason why a monopoly might be regulated?
A. To reduce the inefficiency associated with profits B. To limit prices in important markets with economic or political consequences C. To deal with the negative consequences of government-created monopolies D. To ensure that a good is produced at least cost
A business manager has to decide whether to buy supplies from the marketplace or whether to build them inside the company. What do "information" and "contracting" have to do with this decision?
What will be an ideal response?