CAD Economics

Using the information in the table, create a supply and demand graph. On the graph indicate the market equilibrium price with an X.

This scenario is an example of how a shift in demand can be created by —

• higher prices

• profit motive

• laissez-faire policies

• a non-price determinant

With a given amount of resources, a country with a comparative advantage will produce a product with —

• decreased demand

• lower opportunity costs

• cheaper natural resources

• higher quality specifications

Supporters of protectionism would argue that free trade adversely affects which group of people?

• Workers

• Consumers

• Shareholders

• Multi-national corporations

With regard to food and clothing in the production-possibilities curve above, what does Point B represent? A A combination that can be attained only if all resources are used B A combination that is impossible for this country to attain under current conditions C A combination that can be attained only if a technological advance occurs D A combination that can be attained without using all the country's resources

• A combination that can be attained only if all resources are used

• A combination that is impossible for this country to attain under current conditions

• A combination that can be attained only if a technological advance occurs

• A combination that can be attained without using all the country's resources

Scarcity is a basic economic problem because — A resources are limited B governments limit production C opportunity costs limit demand D people have trouble making choices

• resources are limited

• governments limit production

• opportunity costs limit demand

• people have trouble making choices

What type of market structure is described by the information in the box?

• Oligopoly

• Natural monopoly

• Pure competition

• Monopolistic competition

The late twentieth century has been characterized by an increase in free trade agreements. Advocates of free trade argue that it results in —

• higher unemployment

• increased immigration

• lower corporate tax rates

• increased economic growth

According to the authors of the excerpt, free trade has benefited the United States because it—

• allowed both countries to experience increased economic growth

• resulted in a surplus of exports from the United States to Australia

• improved the relationship between the United States and Australia

• created an increase in cultural diffusion between the two countries

One result of competition in a free enterprise system is — A fewer consumer choices B lower prices for products C steady wages and incomes D improved safety conditions

• fewer consumer choices

• lower prices for products

• steady wages and incomes

• improved safety conditions