Which of the following best describes why and how the world trade organization was created?

because government has become highly effective at central planning.

0%

because private property encourages people to consider the alternative uses of their resources and select those that provide the most rewards.

correct100%

because people tend to be creative and orderly.

0%

through random trial and error.

0%

Unanswered

0%

a nation must export in order to import.

11.1%

trading nations face rising, not constant, opportunity costs.

38.9%

rationales for trade barriers are often absurd.

correct 44.4%

industrial policies are doomed to fail.

5.6%

Unanswered

0%

5 percent.

0%

9 percent.

correct 77.8%

12 percent.

11.1%

15 percent.

11.1%

Unanswered

0%

produce environmental degradation.

33.3%

allow producers to circumvent labor protections such as workplace safety, child labor restrictions, and collective bargaining rights.

5.6%

helps developing nations escape from poverty.

correct 50%

promote the interests of multinational corporations.

11.1%

Unanswered

0%

anarchists.

5.6%

extreme environmentalists.

0%

labor union leaders in industrially advanced countries.

44.4%

economists.

correct 50%

Unanswered

0%

private ownership of all capital.

5.6%

central planning.

correct 88.9%

heavy reliance on markets.

5.6%

wide-spread dispersion of economic power.

0%

Unanswered

0%

public ownership of all capital.

0%

central planning.

5.6%

wide-spread private ownership of capital.

correct 77.8%

a circular flow of goods, resources, and money.

16.7%

Unanswered

0%

The United States and Japan.

0%

Sweden and Norway.

0%

Mexico and Brazil.

0%

Cuba and North Korea.

correct 100%

Unanswered

0%

Canada.

correct 77.8%

Cuba.

0%

North Korea.

0%

China.

22.2%

Unanswered

0%

Who owns the factors of production, and the methods used to coordinate economic activity.

correct 77.8%

The technology used in production, and the quantity and quality of natural resources.

0%

How goods are produced, and who gets them.

16.7%

The political system in place, and the degree of scarcity facing the economy.

5.6%

Unanswered

0%

capital goods.

5.6%

human capital.

0%

property rights.

correct 94.4%

public goods.

0%

Unanswered

0%

self-interest.

16.7%

private property.

11.1%

competition.

correct 66.7%

specialization.

5.6%

Unanswered

0%

discourage investment and growth.

0%

discourage hard work.

5.6%

impede exchange.

5.6%

encourage owners to maintain or improve their property.

correct 88.9%

Unanswered

0%

are both considered by economists to be a part of production costs.

16.7%

are essential to the reallocation of resources from less desired goods to more desired goods.

correct 72.2%

have no influence on the composition of the domestic output.

5.6%

equalize the distribution of income in the long run.

5.6%

Unanswered

0%

The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest.

correct 77.8%

The nonsubstitutability of resources creates a conflict between private and public interests and calls for government intervention.

5.6%

The market system is the best system for overcoming the scarce resources-unlimited wants problem.

16.7%

Central direction by the government will improve resource allocation in a capitalistic economy.

0%

Unanswered

0%

changes in product demands are only randomly reflected in changes in the demands for resources.

5.6%

profit maximization is inconsistent with an efficient allocation of resources.

0%

government action is necessary to correct for market failures.

16.7%

when firms maximize their profits, society's output will also be maximized.

correct 77.8%

Unanswered

0%

incentive problem under central planning.

5.6%

self-sufficiency dilemma under communism.

11.1%

resource overcommitment problem under communism.

0%

coordination problem under central planning.

correct 83.3%

Unanswered

0%

incentive problem.

correct 83.3%

coordination problem.

5.6%

paradox of value.

5.6%

X-efficiency problem.

5.6%

Unanswered

0%

a declining growth rate.

5.6%

poor quality goods.

0%

the failure to provide promised consumer goods.

0%

all of these.

correct 94.4%

Unanswered

0%

price and profit signals eliminated those shortages and surpluses.

11.1%

price and profit signals intensified those shortages and surpluses.

22.2%

producers would not react because no price or profit signals occurred.

correct50%

the planners would immediately adjust production to achieve equilibrium.

16.7%

Unanswered

0%