17.
Broadly defined, competition involves:
A.
private property and freedom of expression.
B.
independently acting buyers and sellers and freedom to enter or leave markets.
C.
increasing opportunity costs and diminishing marginal utility.
D.
capital goods and division of labor.
18.
Competition means that:
A.
sellers can manipulate market price by causing product scarcities.
B.
there are independently acting buyers and sellers in each market.
C.
a product can be purchased at a number of different prices.
D.
there is more than one seller in a market.
19.
The division of labor means that:
A.
labor markets are geographically segmented.
B.
unskilled workers outnumber skilled workers.
C.
workers specialize in various production tasks.
D.
each worker performs a large number of tasks.
20.
Specialization in production is important primarily because it:
A.
results in greater total output.
B.
allows society to avoid the coincidence-of-wants problem.
C.
allows society to trade by barter.
D.
allows society to have fewer capital goods.
21.
Specialization—the division of labor—enhances productivity and efficiency by:
A.
allowing workers to take advantage of existing differences in their abilities and skills.
B.
avoiding the time loss involved in shifting from one production task to another.
C.
allowing workers to develop skills by working on one, or a limited number, of tasks.
D.
all of the means identified in the other answers.
22.
Specialization in production is economically beneficial primarily because it:
A.
allows everyone to have a job that he or she likes.
B.
permits the production of a larger output with fixed amounts of resources.
C.
facilitates trade by bartering.
D.
guarantees full employment.
23.
On the basis of the information, it can be said that:
A.
no coincidence of wants exists between any two states.
B.
a coincidence of wants exists between Michigan and Washington.
C.
a coincidence of wants exists between Texas and Washington.
D.
a coincidence of wants exists between Michigan and Texas.
24.
On the basis of the information and assuming trade occurs between the three states, we can expect:
A.
Washington to exchange apples with Texas and receive money in return.
B.
Washington to exchange apples with Michigan and receive money in return.
C.
Texas to exchange lettuce with Michigan and receive autos in return.
D.
Texas to trade lettuce directly for Washington apples.