Economic freedom is a precondition for economic growth. Which of the following is a characteristic of economic freedom?
i. A democratic form of government
ii. Property rights must be protected.
iii. The government must support and pay for inventions and innovations.
A) i only
B) ii only
C) Both ii and iii
D) Both i and ii
E) Both i and iii
B
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The fact that our wants are unlimited but our resources are limited implies that
A) we should limit our wants. B) entrepreneurship has failed as an economic system. C) we have to make choices. D) the only way to make someone better off is to make someone else worse off.
The cheap foreign labor argument is a poor reason for restricting international trade because
a. the labor productivity of workers who are paid less is lower than the labor productivity of those who are paid more b. all firms and workers gain when there are no restrictions on international trade c. infant industries such as steel and automobiles need to be protected d. specialization and free trade usually raise the prices of all traded goods, so that the workers are paid more e. long run labor costs tend to be the same worldwide because of workers' mobility