There Would Be No Economic Problems in a World in Which

question 1

Multiple Choice

There would be no economic problems in a world in which all resources were

• A) free.
• B) natural.
• C) bought and sold for a price.
• D) owned by the government.
• E) scarce.

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Definitions:

Equivalent Imports

Goods or services brought into a country that serve the same purpose as locally produced goods or services.

Quota

A government-imposed trade restriction limiting the number or monetary value of goods that can be imported or exported during a specified period.

Tariff

A tax imposed on imported goods, often to protect domestic industries or to generate revenue.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they do sell it for, representing their profit.