Which of the following is not a reason countries import goods?
Differences in natural endowments
The law of absolute advantage
Differences in tastes
The love for other nations
Correct answer is D
Reasons for importing goods might include:
Technological unemploment
Stuctural unemployment
Frictional unemployment
Seasonal unemployment
Correct answer is D
Seasonal unemployment occurs when people are unemployed at particular times of the year when demand for labour is lower than usual.
Economic development may be hindered if there is
A high pool of skilled labour
A high rate of economic growth
Political stability
Rapid population growth
Correct answer is D
Limited resources and a larger population puts pressures on the resources that do exist. More people means more mouths to feed, more health care and education services to provide, and so forth. So, population can be a mixed bag.
0
0.5
1
5
Correct answer is C
The price elasticity of supply = % change in quantity supplied / % change in price. When calculating the price elasticity of supply, economists determine whether the quantity supplied of a good is elastic or inelastic.
change in price = 10 - 15 = 5
change in quantity = 10 - 15 = 5
5 ÷ 5 = 1
Perfect knowledge of events in a perfect market will be made possible by the existence of
Many buyers and sellers
Homogeneous products
Means of communication
Large number of traders
Correct answer is A
In a perfectly competitive market, there are many buyers and many sellers. In fact, the number of buyers and sellers is effectively infinite. This alows for the free flow of information in the market.