Make liberal use of scrap paper to draw the graphs needed in answering many of the multiple choice questions. This is a closed book exam. Work on this exam must be entirely your own.
China loses and the United States gains.
In general, the invisible hand of a competitive market place acts to allocate resources a. fairly, but not necessarily efficiently. Trade will probably not make every household better off. Private markets don't account for externalities because a. externalities don't occur in private markets. A negative production externality will cause a market to a. produce less than is socially desirable. Public goods are identified by the characteristics of a. rivalry and excludability.