In an Economy with No Government and No International Trade

question 255

Multiple Choice

In an economy with no government and no international trade, consumption expenditures will be less than the total value of goods and services when

• A) investment is zero.
• B) saving is zero.
• C) people save some of their income.
• D) people barter rather than use money in making exchanges.

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Definitions:

Free Trade Agreements

International treaties between countries that reduce or eliminate trade barriers, such as tariffs and import quotas, to encourage trade and economic cooperation.

Free Trade

An economic policy allowing goods and services to be traded across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Labor

The body of workers in an economy or within a specific sector or industry, often represented collectively in discussions on wages, conditions, and rights.

Management

The process of dealing with or controlling things or people, especially in a professional setting; involves planning, organizing, leading, and controlling organizational resources.