For certain public projects such as building a dam on a river or a bridge to an island, what procedure is a government likely to use to determine what quantity of a public good should be supplied?
A) It hires economists to estimate the market demand for the product.
B) It evaluates the costs and benefits of producing the good.
C) It takes a vote in Congress.
D) It conducts public surveys to determine if consumers want the product.
Question 2
The concept of ________ explains how trade between two countries can make each better off.
A) absolute advantage B) autarky
C) trade barriers D) comparative advantage
