What is the most common goal of a trade agreement?
A.
Free movement of citizens between the countries invovled.
B.
Forgive common debts between the countries involved.
C.
Implement a common currency for the countries involved.
D.
Eliminate trade barriers between the countries involved.
D. Eliminate trade barriers between the countries involved.
Free trade is based on what principle?
A.
Comparative advantage
B.
Comparative scale
C.
Economies of advantage
D.
Production possibilities advantage
A. Comparative advantage.
What is the primary measure of a nation's level of development?
A.
Population
B.
Per capita GDP
C.
Natural Resources
D.
Ratio of imports to exports
B. Per capita GDP (Gross Domestic Product).
Which of the following pairs of characteristics would more likely be a part of a mixed economic system and not found in a pure market economic system?
A.
The profit motive and self-interest.
B.
Consumer sovereignty and competition.
C.
Unemployment benefits and Social Security.
D.
Private property and voluntary exchange.