"What economic principle dictates specialization, and eventually trade?" A-The principle of comparative advantage B- The low hanging fruit principle C- The principle of incentives D- The principle of increasing opportunity cost

A supplier is willing to sell a good in the market it A-marginal cost is larger than the price B- marginal cost is larger than marginal revenue C- marginal cost is no larger than marginal revenue D- markets are not centrally controlled

"When the government sets a maximum rental price that equilibrium price, that represents an example of a __ and results in a __

A- price floor; shortage of rental housing B- price ceiling: discrimination

C-price floor: unemployment D- price ceiling: surplus of rental housing

Payments by the government for which receives no current goods or services in return are called? A- public bonds B- private savings C-transfer payments D- public stocks

*For a given good, while keeping everything else constant, the law of demand implies that

A-,"as the demand for the good increases, the price of the good will fall* B- ' as the price of the good rises, the quantity demanded of the good will increase C- ' as income rises, the quantity demanded of the good will increase if the good is a normal good D- once the price of the good in question increases, the quantity demanded of that good decreases